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Bitget Eyes Indian FIU Registration After Binance
Bitget, a leading 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 the Financial Intelligence Unit (FIU) of India to obtain registration as a Virtual Asset Service Provider (VASP).
1/ We are aware of the current difficulty in accessing the Bitget platform in India. We are actively exploring ways to serve the region, ensuring that our platform meets the region’s compliance requirements.
— Bitget India🇮🇳 (@BitgetIndia) July 3, 2024
India’s rapid growth in the cryptocurrency sector, highlighted by its leading adoption rate in 2023, second for Chainalysis, represents a significant market for Bitget.
Although Bitget currently operates in India, it is struggling to attract 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 compliant to serve our users in India,” revealed Simran Alphonso, Bitget’s head of global communications, in a July 3 post.
BItget’s latest announcement comes hot on the heels of Binance’s recent announcement he returned to India following a 4-month ban imposed on the exchange by the country’s Financial Intelligence Unit (FIU).
This prohibition had affected nine currency changesincluding KuCoin and Binance, which have since complied with the regulations, while OKX has ceased operations in India.
Through the ban, the FIU aimed to address a huge cash drain, estimated at Rs 3,000 crore (about $361.45 million) annually, caused by unregistered foreign exchange.
With the VASP registration, Bitget will adhere to the same rules as local exchanges, including a 1% withholding tax (TDS), a measure already implemented by KuCoin and other Indian exchanges.
Cryptocurrency regulation in India remains a contentious issue, with differing views among regulators on how to approach the emerging sector.
Indian Finance Minister Nirmala Sitharaman has championed 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 an outright ban on digital assets.