CoinDCX Considers Public Listing Amid Regulatory Uncertainty In India

Coinbase Looking to Imitate Coinbase’s IPO Footsteps

CoinDCX co-founder Neeraj Khandelwal made the statement in a Bloomberg TV interview on Monday (Nov. 29, 2021). The exchange did not seem to be in a hurry, with Khandelwal saying that the platform will come up with a “precise timeline” if the upcoming regulations are favorable.

Meanwhile, the CoinDCX co-founder believes that a crypto company going public would offer some stamp of legitimacy to the digital currency industry and also boost investors’ confidence in the sector, imitating the U.S. cryptocurrency exchange giant, Coinbase. According to Khandelwal:

“As soon as the government or the situations allow 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.”

Coinbase set a record earlier in the year as the first crypto company to go public. The platform’s COIN shares were listed on Nasdaq back in April, with the price currently at $318.

CoinDCX became the first crypto startup in India to attain the unicorn status. In August, the platform raised $90 million in a funding round led by B Capital Group, an investment firm led by Eduardo Saverin, co-founder of social media platform Facebook. Other investors in the round included Coinbase, Jump Capital, and Block.one, with CoinDCX’s value standing at over $1 billion.

Indian Government Does not Recognize Bitcoin as Currency

Meanwhile, CoinDCX’s plans come amid the regulatory uncertainty that continues to enshroud India’s cryptocurrency landscape. The country’s Finance Minister Nirmala Sitharaman, revealed during a question and answer session in the Parliament, that the government has no plans to recognize bitcoin as a currency.

Sitharaman also said that the government does not collect data on bitcoin transactions. The Finance Minister’s comments come as the government’s proposed Cryptocurrency and Regulation of Official Digital Currency Bill 2021 is being discussed during its winter session starting this Monday.

The bill is seeking to ban all forms of private cryptocurrencies, which is the same as the draft Bill submitted earlier in January 2021. Meanwhile, the proposal will create a regulatory framework that would allow for the development of a central bank digital currency (CBDC).

An excerpt from a bulletin reads:

“The Bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”

Earlier in November, India’s central bank, the Reserve Bank of India (RBI) was looking to launch a CBDC pilot in 2022, but will explore various issues regarding a digital rupee.

Although there continues to be a hot and cold approach from the Indian government regarding cryptocurrency, it has not deterred local investors from carrying out crypto trading.

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