Regulation
Bitget Considers Indian FIU Registration After Binance
Bitget, a major cryptocurrency exchange, is working with Indian regulators to obtain the necessary licenses to operate in compliance with local laws.
On July 3, the company announced its ongoing discussions with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.
1/ We are aware of the current difficulty in accessing the Bitget platform in India. We are actively exploring ways to serve the region while ensuring that our platform meets the region’s compliance requirements.
— Bitget India🇮🇳 (@BitgetIndia) July 3, 2024
India’s rapid growth in the crypto sector, highlighted by its leading adoption rate in 2023, according to for Chainalysis, making it an important market for Bitget.
Although Bitget is currently operating in India, it is facing difficulties in attracting new users due to lack of VASP registration.
“India is a high priority market for Bitget. We are actively working to familiarize ourselves with the regulations to ensure that the platform is compliant and that we can serve our users in India,” revealed Simran Alphonso, Bitget’s head of global communications, in a July 3 article on X.
Bitget’s latest announcement follows that of Binance, which recently has returned to India following a 4-month ban imposed on the exchange by the country’s Financial Intelligence Unit (FIU).
This ban had affected nine foreign exchangesincluding KuCoin and Binance, which have since complied with regulations, while OKX has ceased operations in India.
With this ban, the FIU wanted to tackle the massive tax leakage, estimated at INR 3,000 crore (approximately USD 361.45 million) per year, caused by unregistered foreign exchanges.
With the VASP registration, Bitget will adhere 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 topic, with regulators divided on how to deal with the emerging industry.
Indian 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. In contrast, the Reserve Bank of India is sticking to its call for a blanket ban on digital assets.