No Immediate Plan for IPO, Says CoinDCX

Source: 99bitcoins

CoinDCX, India’s largest cryptocurrency exchange has no imminent plans to go public due to the country’s unclear legal environment. According to the Economic Times, the team highlighted that as a company, it has hopes to go public one day. However, it is unlikely to happen anytime soon according to the statement.

In an official statement on Nov. 29, CoinDCX said that it has no set route or clause for when it will proceed with a prospective initial public offering (IPO).

“Any growing company aspires to take an IPO route in due course. We at CoinDCX also have similar aspirations. We would like to reiterate that there is no immediate plan in the foreseeable future to announce an IPO,” a spokesperson said.

The recent announcement backs up CoinDCX co-founder Neeraj Khandelwal’s earlier statement. He said the exchange would pursue an IPO “as soon as the government or the circumstances allow.” CoinDCX will decide on an “exact time scale” based on impending government rules, according to Khandelwal in a Bloomberg interview.

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The purpose of the Bloomberg interview was to address the regulatory framework in India. According to a CoinDCX spokesman, the interview was about the crypto bill that was submitted in the parliament.

 “The focus of the interview today morning was to discuss the regulatory framework in India about the crypto bill being tabled in the parliament.We would like to reiterate that as any growing company aspires to take an IPO route in due course, we at CoinDCX also have similar aspirations,”  said the company’s spokesperson.

CoinDCX is one of India’s largest cryptocurrency exchanges. Sumit Gupta and Neeraj Khandelwal, founded CoinDCX in 2018 and already has over six million Indian users.

CoinDCX Fundraising

CoinDCX raised $90 million in a Series C fundraising round in August, led by Facebook co-founder Eduardo Saverin’s B Capital Group and other investors. Consequently, it became the first crypto company in India to achieve unicorn status.

According to the company’s co-founder Neeraj Khadelwal, an IPO from CoinDCX, would give the industry more respectability. “Just like the Coinbase IPO gave a lot of confidence in the crypto market, similarly, we want to instill a similar level of confidence with an IPO of CoinDCX,” he told the Economic Times.

India’s finance minister, Nirmala Sitharaman, said that the government has no intentions to recognize Bitcoin (BTC) as a currency. According to local sources, on Nov. 29, she also pointed out that the government does not track Bitcoin transactions.

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Regulation Issues 

The government announced last Tuesday that it will introduce “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” during Parliament’s winter session, which begins today. The law proposes banning all private cryptocurrencies, with exceptions to promote the technology and its applications.

Companies that list their coins on exchanges may require to submit disclosures to the markets regulator. The regulator will also require the companies to adhere to other compliance requirements under the bill. The government had scheduled the identical Bill for the January Budget session, but it was never considered.

The recent news comes after years of ambiguity in India about cryptocurrency legislation. The market remains uncontrolled despite the central bank’s attempt to ban cryptocurrencies in 2018. Earlier this year, several ostensibly government-connected sources stoked fears of a new crypto ban, claiming that the Indian government was considering a blanket ban on the industry.