Bitget, one of the major players in the cryptocurrency exchange market, is currently in talks with Indian regulators to ensure that they are compliant with local laws and regulations. The company is seeking registration with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.
India has seen significant growth in the crypto sector, becoming a key market for Bitget, especially after being recognized for its leading adoption rate in 2023. Despite already operating in India, Bitget faces challenges in attracting new users due to the lack of VASP registration.
In a statement made by Bitget’s head of global communications, Simran Alphonso, it was revealed that India is a high-priority market for the company. Bitget is actively working to navigate through regulations to ensure compliance and continue serving its users in India.
This move by Bitget comes shortly after Binance’s return to India, following a 4-month ban imposed by the nation’s Financial Intelligence Unit (FIU). The ban affected nine foreign exchanges, including KuCoin, with some choosing to comply with regulations while others, like OKX, ceased operations in India.
The FIU’s ban was aimed at addressing significant tax leakage caused by unregistered foreign exchanges, estimated at INR 3000 crores annually. With VASP registration, Bitget will be subject to the same rules as local exchanges, including a 1% tax deduction at source (TDS).
The issue of cryptocurrency regulation in India remains a topic of debate among regulators. While India’s Finance Minister, Nirmala Sitharaman, has called for international collaboration to develop a comprehensive framework for cryptocurrencies, the Reserve Bank of India continues to advocate for a blanket ban on digital assets.
Overall, Bitget’s efforts to secure registration with the Indian FIU demonstrate the company’s commitment to operating within the legal framework of the country. By complying with regulations and addressing the challenges in the crypto sector, Bitget aims to continue its operations in India and serve its users effectively.