Cryptocurrency exchange Bitget is making moves to solidify its presence in India. Navigating the complex regulatory landscape, Bitget is actively engaging with the India Financial Intelligence Unit (FIU) to secure the necessary Virtual Asset Service Provider (VASP) registration. This is a crucial step for Bitget to fully operate within Indian laws and offer its services to a wider audience.
Bitget Pursues India License for Full Compliance
- Bitget is collaborating with India’s Financial Intelligence Unit (FIU) to obtain the required license.
- This registration will ensure tax compliance and operational transparency.
- It aims to provide a secure platform for community interaction and educational initiatives.
According to Simran Alphonso, Bitget’s head of global communications, securing the VASP registration is vital for several reasons:
“It also provides a safe ground to host meetups, interact with the community and run educational drives. It makes a crypto exchange more reliable and credible,”
Alphonso also highlighted that FIU registration enhances consumer protection by offering avenues for dispute resolution, fraud compensation, and support in tracking down scammers.
Current Operations and Limitations
Bitget currently operates in India but faces hurdles in onboarding new users due to regulatory constraints. Existing users can access the app and its features, but new users might encounter difficulties downloading the app from app stores.
“There’s difficulty for new users to access Bitget apps on Google Play store and App store while existing users can use the app with all its available features.”
Despite these limitations, Bitget remains committed to the Indian market, viewing it as a high-priority region for growth and expansion.
Following in the Footsteps of Binance and KuCoin
Bitget’s pursuit of compliance mirrors the recent actions of other major exchanges like Binance and KuCoin. These exchanges also faced regulatory challenges in India and ultimately obtained VASP approvals after paying penalties.
In late 2023, the FIU issued noncompliance notices to nine crypto exchanges, including Binance and KuCoin. This led to Apple’s App Store blocking several crypto exchange apps, including Bitget, Binance, and KuCoin, in India.
KuCoin reportedly paid a penalty of $41,000 to resume operations, while Binance faced a $2.25 million fine for non-compliance with Anti-Money Laundering (AML) rules.
“Currently other global exchanges — like KuCoin and Binance — have paid penalties and are now completing the registration to restore full services. This is now the same case with Bitget — it’s applied for registration and is currently in talks with the regulators,”
What Does This Mean for the Indian Crypto Market?
Bitget’s active engagement with Indian regulators signals a positive trend towards greater compliance and legitimacy within the Indian cryptocurrency market. By obtaining VASP registration, Bitget aims to offer a more secure and transparent platform for Indian users, fostering trust and encouraging wider adoption of cryptocurrencies.
The company’s efforts reflect a broader industry trend where crypto exchanges are increasingly prioritizing regulatory compliance to gain access to key markets and build sustainable businesses.
Conclusion
Bitget’s pursuit of a VASP license in India marks a significant step towards establishing a fully compliant and trustworthy cryptocurrency exchange platform for Indian users. By proactively engaging with regulators and prioritizing transparency, Bitget is positioning itself for long-term success in this vital market. As the regulatory landscape evolves, Bitget’s commitment to compliance will be crucial in fostering growth and innovation within the Indian crypto ecosystem.
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