CoinDCX Raises Again — Is India’s Crypto Winter Finally Thawing?

A few months after CoinDCX became India’s first crypto unicorn in 2021, it launched a glossy ad campaign featuring Bollywood actor Ayushmann Khurrana declaring, “Future yahi hai.” The line was not merely a marketing slogan but a bold appeal for legitimacy in a country where cryptocurrency was yet to be recognised as a financial product.

CoinDCX had first approached Amitabh Bachchan to be the brand ambassador, but the veteran actor stepped back, waiting for legal clarity. In hindsight, that restraint looked wise. Within months, an onslaught of crypto ads from CoinDCX, CoinSwitch Kuber and WazirX provoked a backlash. Prime Minister Narendra Modi warned that digital currencies could “spoil” young Indians, reflecting the growing unease within government circles about unregulated speculation.

That unease was not new as in April 2018, the Reserve Bank of India prohibited banks from dealing in cryptocurrencies, cutting off the financial oxygen for exchanges and blocking CoinDCX’s seed funding round. The Supreme Court reversed the ban in March 2020, which unleashed a flood of venture capital and helped CoinDCX and CoinSwitch Kuber enter the unicorn club. The crypto frenzy mirrored the wider funding boom that produced dozens of new billion-dollar startups across sectors.

The enthusiasm did not last and in 2022, the government imposed a steep 30% tax on virtual digital assets. The following year, cryptocurrencies and other digital assets were brought under the Prevention of Money Laundering Act. The twin moves drained investor sentiment and eroded trading activity. CoinDCX itself faced internal churn, with several top executives including its chief technology officer, legal head, human resources head and information security officer leaving within a year. The company also suffered a sophisticated server breach that resulted in losses of about $44 million, deepening the industry’s gloom.

Against that background, Coinbase’s decision to reinvest in CoinDCX comes as a quiet surprise. The American exchange did not reveal the size of its investment, but the deal values CoinDCX at $2.45 billion, around 14% higher than its Series D valuation in April 2022. The increase may appear modest, yet the broader context is important. Late-stage funding has slowed sharply, some startups have accepted lower valuations, and highly funded firms such as Byju’s have collapsed altogether. In such a setting, a higher valuation signals renewed conviction rather than exuberance.

Coinbase’s move is also strategic and the company plans to restart operations in India after a three-year hiatus, suggesting that it wants a deeper local presence through CoinDCX. For the Indian exchange, the association with a global player brings both capital and credibility. Despite the turbulence, CoinDCX’s financial performance shows resilience, with operating revenue rising 43% to ₹5.6 billion in 2024–25 and a modest net profit of ₹170 million.

CoinDCX has also begun to expand its reach beyond India. Its growing focus on the Middle East offers a cushion against domestic policy uncertainty. The Gulf region is positioning itself as a hub for fintech and digital assets, and this diversification gives CoinDCX an avenue for growth even if Indian regulations remain restrictive.

Recent developments in the United States have further altered the global backdrop. Since Donald Trump returned to the White House, Washington has signalled a more open approach to digital finance. In July, the President signed the GENIUS Act into law, establishing the first federal regulatory framework for payment stablecoins. These digital tokens, pegged to the US dollar, are less prone to the extreme volatility of other cryptocurrencies and could form the bridge between traditional finance and the crypto ecosystem.

India, for its part, is taking a cautious middle path. A recent government document suggested that while New Delhi is not inclined to legislate a full regulatory code for crypto, it will also avoid a complete ban, acknowledging that peer-to-peer transfers and decentralised trading cannot be fully suppressed. This pragmatic stance could encourage global investors such as Coinbase to deepen their exposure in India and back emerging crypto ventures. Yet, the government must avoid erratic policy shifts that undermine credibility, for volatility is intrinsic to the asset, not a policy failure.

Globally, sentiment towards crypto is also shifting. China’s prohibition remains absolute, yet the United States has started to take a more pragmatic stance. The Securities and Exchange Commission recently said it may amend its rules to allow crypto trading on national securities exchanges, an acknowledgement that digital assets can no longer be excluded from mainstream markets.

India’s approach has been far more cautious and the government has chosen to regulate through taxation, compliance, and ambiguity, discouraging speculation without outlawing the activity. That strategy may have curbed excess, but it has also constrained innovation. As the US and Gulf economies explore ways to integrate crypto within regulated frameworks, India risks being left behind in another frontier of financial technology.

Still, the new funding round for CoinDCX restores a measure of optimism. It suggests that investors have not entirely written off India’s crypto ecosystem and that disciplined players may yet thrive within a stricter regulatory regime. The early phase of exuberance has given way to maturity, and that transition might be what the sector needed all along.

Three years ago, CoinDCX’s declaration that “Future yahi hai” sounded like marketing bravado. Today, with its books in order and its backers returning, the same line carries a more measured confidence. Crypto may not have regained its old allure, but it has recovered its heartbeat, and that alone is enough to suggest that kah future hai.