Bitget, a major cryptocurrency exchange, is working with Indian regulators to secure the necessary licenses to operate in compliance with local laws.
On July 3, the company announced that it is in ongoing discussions with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.
India’s rapid growth in the crypto sector, reflected in its leading adoption rate in 2023, According to For Chainalysis, it makes it an important market for Bitget.
Although Bitget is currently operating in India, it faces challenges in attracting new users due to the lack of VASP registration.
“India is a high priority market for Bitget. We are actively reviewing regulations to ensure the platform is compatible with us serving our users in India.” open Bitget’s Head of Global Communications, Simran Alphonso, in a post on July 3.
BItget’s latest announcement comes on the heels of Binance’s recent return to India after a 4-month ban imposed on the exchange by the country’s Financial Intelligence Unit (FIU).
The ban affected nine foreign exchanges, including KuCoin and Binance, which have since complied with the regulations, while OKX has suspended operations in India.
Through the ban, the FIU aims to address a huge tax leakage, estimated at around INR 3,000 crore (around USD 361.45 million) annually, due to unrecorded foreign exchange transactions.
By registering as a VASP, Bitget will be bound by 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 divided opinions among regulators on how to handle the emerging industry.
Indian Finance Minister Nirmala Sitharaman has called for international cooperation to develop a comprehensive framework for cryptocurrencies, urging governments to recognize the potential benefits of blockchain technology. In contrast, the Reserve Bank of India continues to call for a blanket ban on digital assets.
