Bitget Sets Sights on Registration with Indian Financial Intelligence Unit in Wake of Binance
Bitget, a prominent cryptocurrency exchange, is working with Indian authorities to obtain the necessary licenses to operate in accordance with local regulations.
On July 3, the company announced its ongoing negotiations with India’s Financial Intelligence Unit (FIU) to acquire Virtual Asset Service Provider (VASP) registration.
India’s rapid growth in the cryptocurrency sector, as evidenced by its leading adoption rate in 2023, according to Chainalysis, makes it a crucial market for Bitget.
Despite currently operating in India, Bitget faces difficulties in attracting new users due to the absence of VASP registration.
“India is a top priority market for Bitget. We are actively navigating through regulations to ensure that the platform is compliant in order to serve our users in India,” shared Bitget’s head of global communications, Simran Alphonso, in a July 3 X post.
Bitget’s recent announcement follows Binance’s reentry into 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, both of which have since complied with regulations, while OKX has ceased operations in India.
You might also like:
India’s financial regulator hits crypto exchange Binance with $2.25m fine
The FIU aimed to address significant tax leakage, estimated at INR 3000 crores (approximately USD 361.45 million) annually, caused by unregistered foreign exchanges through the ban.
With VASP registration, Bitget will be subject to the same regulations 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 contentious issue, with regulators divided on how to approach the emerging industry.
India’s Finance Minister, Nirmala Sitharaman, has advocated for international cooperation to develop a comprehensive framework for cryptocurrencies, urging governments to recognize the potential benefits of blockchain technology. However, the Reserve Bank of India continues to push for a blanket ban on digital assets.
Read more:
India’s CBDC activity declines sharply after artificial pump: report
