India’s CCI clears Coinbase’s minority stake in CoinDCX, cementing the US exchange’s return to India and strengthening the local platform’s position in a top crypto adoption market.

India’s antitrust regulator approved Coinbase Global Inc.’s acquisition of a minority stake in local cryptocurrency exchange CoinDCX, the Competition Commission of India announced Tuesday.

The approval marks a development in the U.S. firm’s efforts to expand operations in India, according to the regulatory filing. Coinbase will strengthen its partnership with CoinDCX, one of India’s digital asset platforms, through the transaction.

India and crypto legislation

The investment was first announced in October. CoinDCX received a valuation as part of the transaction, though specific financial terms were not disclosed.

The exchange experienced a security breach earlier this year when a software engineer was deceived into installing malware by attackers posing as recruiters, according to previous reports. Coinbase described CoinDCX as a financially sound business positioned for growth and scale, according to company statements.

The approval coincides with Coinbase’s return to operations in India after more than two years. The company had previously exited the market due to regulatory hurdles, according to company filings.

Coinbase aims to increase its presence in India and the Middle East, targeting markets that have shown adoption of digital assets, according to company statements.

India ranked first globally in cryptocurrency adoption for the third consecutive year, ahead of the United States, Pakistan, the Philippines, and Brazil, according to an October report from TRM Labs.

The transaction may encourage additional investments by foreign exchanges seeking to enter India’s digital finance market, according to market analysts. The approval strengthens CoinDCX’s position among the nation’s cryptocurrency platforms, according to industry observers.