Coinbase has increased its investment in India’s CoinDCX, valuing the exchange at $2.45 billion post-money, as the U.S. crypto giant bets on the country’s digital-asset potential even as regulation remains unclear.

The investment is an extension of CoinDCX’s previous funding round and is subject to regulatory approvals and customary closing conditions, the companies said on Wednesday. They did not disclose the amount invested or the size of Coinbase’s stake, but noted that the new round increased the Indian exchange’s valuation from $2.15 billion in its last raise in April 2022.

CoinDCX confirmed to TechCrunch that the latest funding is an investment of new capital by Coinbase. The U.S. exchange has been an investor in CoinDCX since 2020 and last backed the Indian exchange in its Series D round in 2022 through its venture capital arm, Coinbase Ventures.

Notably, the funding comes just months after CoinDCX suffered a security breach in July that led to the theft of around $44 million worth of assets. It comes amid reports earlier this year suggesting that Coinbase was acquiring CoinDCX — claims that the Indian exchange’s CEO denied at the time.

“This investment adds to our growing presence in the region, where we also maintain local operations and other important local partners,” said Coinbase’s chief business officer, Shan Aggarwal, in a blog post. “Taken together, these steps reflect a clear commitment: we believe India and its neighbors will help shape the future of the global onchain economy.”

More than a year after ceasing operations in India, Coinbase re-entered the market earlier this year by registering with the country’s Financial Intelligence Unit. The U.S. exchange is also an investor in CoinSwitch, another leading Indian crypto platform.

India, the world’s most populous country and home to more than a billion internet subscribers, is a key market for U.S. tech giants. However, the South Asian nation remains a relatively small market for crypto, partly due to regulatory uncertainty and the government’s flat 30% tax on digital asset gains, along with a 1% levy on each transaction. New Delhi also restricts offshore crypto exchanges unless they register with its financial watchdog. Recently, 25 global platforms — including BingX, LBank, and CoinW — came under government scrutiny for failing to register and comply with anti–money laundering rules.

Coinbase’s move to double down on CoinDCX to expand its presence in India makes strategic sense, as the Indian exchange has a strong local footprint with more than 20.4 million users. In July, CoinDCX reported customer assets exceeding ₹100 billion (about $1.12 billion), annualized group revenue of ₹11.79 billion (around $133 million), and annualized transaction volumes across products totaling ₹13.7 trillion (roughly $154.6 billion).

In addition to India, CoinDCX expanded into the Middle East and North Africa (MENA) last year by acquiring BitOasis. Coinbase could leverage that footprint to strengthen its presence in the region, one of the fastest-growing crypto markets globally.

The new capital will be used to enhance products, drive user growth, expand into new geographies, and deepen educational initiatives, CoinDCX said in a statement.

“We see strong synergies with Coinbase in building a compliant and regulatory-friendly crypto ecosystem in India, MENA, and beyond,” Sumit Gupta, co-founder and CEO of CoinDCX, said.