In Brief:
- CoinDCX plans to go public as soon as Indian regulations allow it.
- The expansion plan arrives at a critical juncture in India’s cryptocurrency business.
- The new regulation would have a positive impact for investors and enterprises like CoinDCX.
According to CoinDCX co-founder Neeraj Khandelwal, India’s first cryptocurrency unicorn aims to pursue an initial public offering (IPO) as soon as government regulations allow it.
In an interview with Bloomberg Television on Monday, Khandelwal said that the share offering would be a crucial vote of confidence for India’s digital asset business, similar to Coinbase Global Inc.’s US IPO earlier this year.
He said, “as soon as the government or the situation allows us, we will try for an IPO.” “An IPO gives legitimacy to the industry, just like the Coinbase IPO gave a lot of confidence in the crypto markets. Similarly we want to instill a similar level of confidence with an IPO of CoinDCX,” he further added.
According to Khandelwal, the firm would decide on a “precise timeline” based on incoming government requirements. He additionally said, “we certainly will look at that in order to grow the industry further.”
The firm’s expansion plans come at a critical time for the cryptocurrency industry’s future in India, as Prime Minister Narendra Modi’s administration works on laws to regulate cryptocurrencies.
Also all private cryptocurrencies will be banned while an official digital currency is produced, according to the central bank. In order to encourage blockchain technology, the government, on the other side, is willing to create exceptions.
India effectively banned crypto transactions in 2018, but the ban was lifted last year by the Supreme Court.
According to a recent opinion poll in India, more than half of those polled oppose the legalisation of cryptocurrencies, preferring instead to tax them as a digital asset held in a foreign country.
The new regulation, according to Khandelwal, would have a positive impact because it will provide confidence for investors and enterprises like CoinDCX.
This year, CoinDCX raised 6.70 billion rupees ($90 million) from investors led by Eduardo Saverin, co-founder of Facebook Inc.’s B Capital Group. Sumit Gupta, the company’s CEO and co-founder, indicated at the time that the fundraising round valued the company at $1.1 billion.
Before this, a meeting with India’s key crypto stakeholders was organised by the Parliamentary Standing Committee on Finance. The meeting’s topic was “Hearing of the views of associations/industry experts on the subject of ‘CryptoFinance’: Opportunities and Challenges.”
