Coinbase Ventures Backed CoinDCX Invests In Crypto Taxation Firm KoinX

Coinbase Ventures-backed crypto exchange CoinDCX has inked a strategic partnership with KoinX and also invested in the crypto taxation platform.

This partnership, through its investment arm, CoinDCX Ventures, marks an advancement following CoinDCX’s earlier integration and exemplifies its plan to facilitate a secure crypto trading experience for its users, the startup said in a statement on Tuesday (January 16).

The collaboration is expected to involve insights into product development with a customer-centric focus. It is believed that the partnership will also align marketing efforts to enhance visibility for KoinX along with an advantage of tapping into the CoinDCX community of more than 1.4 Cr users.

This comes close on the heels of tech giant Apple delisting at least three offshore crypto exchanges including Binance, Kucoin and OKX, from its India app store. 

KoinX, founded by Punit Agarwal, provides automated taxations to crypto users by integrating their portfolio and all their transactions on a single unified platform with a consolidated dashboard. It ensures transparent and fully compliant tax reports in accordance with Indian tax laws.

Founded by Sumit Gupta and Neeraj Khandelwal in 2018, CoinDCX claims to have a user base of over 1.4 crore. It offers easy access to Web3 experiences and democratise investments in virtual digital assets with user safety and security.

Rohit Jain, managing director of CoinDCX Ventures, said,” In the case of KoinX, we see even more potential, considering the burgeoning crypto ecosystem and the need to scale the tax platform to meet requirements.”

Punit Agarwal, founder of KoinX, said, “The partnership strengthens our mission of providing crypto tax solutions and establishes KoinX as a preferred choice for users seeking a seamless and compliant trading journey.”

The development comes at a time when heavy taxation regime has led to a slump in trading volume on crypto exchanges. On top of that, heavy compliance mandates have forced many local crypto players to change course or even shut down operations (Pillow and WeTrade) altogether. 

The calls by the top brass of the Reserve Bank of India (RBI) to ban cryptocurrencies, terming them a threat to India’s macroeconomic stability, have only made matters worse. The collapse of giants such as FTX further dampened the sentiment and has dried up VC funding for the once sunrise sector.