Bitget, a leading cryptocurrency exchange, is working with Indian regulators to obtain the required licenses to operate in accordance with local laws.
On July 3, the company announced that it is in talks with India’s Financial Intelligence Unit (FIU) to secure Virtual Asset Service Provider (VASP) registration.
India’s rapid growth in the cryptocurrency sector, as demonstrated by its leading adoption rate in 2023 according to Chainalysis, makes it a significant market for Bitget.
Despite currently operating in India, Bitget faces challenges in attracting new users due to the lack of VASP registration.
“India is a top priority market for Bitget. We are actively working to navigate through regulations to ensure that the platform is compliant so we can serve our users in India,” said Bitget’s head of global communications, Simran Alphonso, in a post on July 3.
Bitget’s recent announcement follows Binance’s return to India after a 4-month ban imposed by the nation’s Financial Intelligence Unit (FIU).
This ban affected nine foreign exchanges, including KuCoin and Binance, which have since complied with regulations, while OKX has ceased operations in India.
The FIU’s ban aimed to address significant tax leakage, estimated at INR 3000 crores (approximately USD 361.45 million) annually, caused by unregistered foreign exchanges.
With VASP registration, Bitget will be subject to the same rules as local exchanges, including a 1% tax deduction at source (TDS), a measure already implemented by KuCoin and other Indian exchanges.
Cryptocurrency regulation in India remains a controversial issue, with regulators holding divided opinions on how to address the emerging industry.
India’s Finance Minister, Nirmala Sitharaman, has called for international collaboration to develop a comprehensive framework for cryptocurrencies, urging governments to recognize the potential benefits of blockchain technology. On the other hand, the Reserve Bank of India maintains its stance in favor of a blanket ban on digital assets.
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