Bitget, a well-known global exchange, has started discussing with the country’s governing bodies. The goal of the exchange is to get the licenses it needs to legally do business in India.
Bitget officially announced on July 3 that it was in discussions with India’s Financial Intelligence Unit (FIU) to become a Virtual Asset Service Provider (VASP). This important step is seen as necessary for Bitget to continue serving its Indian customers in a way that meets government standards..
Bitget Eyes Compliance Amid India’s Evolving Crypto Regulations
Chainalysis reports that India has become a key player in the global crypto scene, with usage rates rising quickly in 2023. Bitget knows how important India is and currently works in the country. However, it has difficulty growing its user base because VASP registration is not available.
“India is a high-priority market for Bitget. We’re actively navigating through regulations to ensure compliance, enabling us to better serve our users in India,” said Simran Alphonso, Bitget’s head of global communications, in a statement on July 3rd.
Notably, another significant exchange, Binance, just started running again after the FIU ordered a four-month break. Nine foreign exchanges were hit by this break, which led platforms like KuCoin to try to comply. OKX also stopped doing business in India altogether.
The FIU is taking strict measures, such as requiring a 1% tax deduction at source (TDS), to stop tax evasion that costs the government an estimated 3000 crores every year through operations of unregistered foreign exchanges.
The Reserve Bank of India still wants a complete ban on digital assets, even though Finance Minister Nirmala Sitharaman wants countries around the world to work together to create a comprehensive regulatory framework that takes into account the possible benefits of blockchain technology.
