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Bitget, a major cryptocurrency exchange, is collaborating with Indian regulators to secure the necessary licensing 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.
India’s rapid growth in the crypto sector, highlighted by its leading adoption rate in 2023, makes it a significant market for Bitget. Although Bitget currently operates 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’re actively navigating through regulations to make sure the platform is compliant for us to serve our users in India,” stated Bitget’s head of global communications, Simran Alphonso.
Bitget’s latest announcement follows the recent return of Binance to India after a 4-month ban imposed by the nation’s Financial Intelligence Unit (FIU). This ban had impacted nine foreign exchanges, including KuCoin and Binance, who have since complied with regulations, while OKX has ceased operations in India.
The FIU aimed to address significant tax leakage, estimated at INR 3000 crores (approximately USD 361.45 million) annually, caused by unregistered foreign exchanges. With 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 contentious issue, with divided opinions among regulators on how to address the emerging industry. India’s Finance Minister, Nirmala Sitharaman, has advocated for international collaboration to develop a comprehensive framework for cryptocurrencies, urging governments to recognize the potential benefits of blockchain technology. Conversely, the Reserve Bank of India maintains its call for a blanket ban on digital assets.
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