Bitget, a major cryptocurrency exchange, is actively engaging with Indian regulators to secure the necessary licensing to operate in compliance with local laws. The company announced on July 3 that it has been in discussions with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.
Importance of VASP Registration
Simran Alphonso, Bitget’s head of global communications, highlighted the significance of VASP registration for tax compliance and operational transparency. Alphonso emphasized, “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 further elaborated that FIU registration would enhance consumer protection by aiding in dispute resolution, fraud compensation, and support from civil forces in tracking down scammers.
Current Operational Challenges
Despite currently operating in India, Bitget faces challenges due to the lack of VASP registration. Alphonso noted, “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.” However, she did not specify the exact services Bitget offers its current users in India.
Commitment to the Indian Market
Despite these hurdles, Alphonso expressed Bitget’s strong commitment to the Indian market, describing it as a “high-priority market” for the company.
Recent Developments and Compliance Efforts
Bitget’s move towards compliance comes in the wake of recent approvals by India’s FIU for VASP applications from other major exchanges like Binance and KuCoin in May 2024. These approvals reinstated their legal status in India after the FIU had issued noncompliance notices to nine crypto exchanges, including Binance and KuCoin, in late 2023.
Due to these compliance issues, apps from Binance, KuCoin, Bitget, Huobi, OKX, Gate.io, and MEXC were blocked on Apple’s App Store in India in December last year. KuCoin reportedly paid a penalty of $41,000 and resumed operations in May 2024. The FIU also fined Binance $2.25 million for servicing Indian clients without adhering to local Anti-Money Laundering rules.
Alphonso stated, “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.”
Bitget’s active engagement with Indian regulators and pursuit of VASP registration underscores its commitment to operating within legal frameworks and enhancing its credibility and reliability. By obtaining the necessary licensing, Bitget aims to ensure tax compliance, operational transparency, and robust consumer protection, thereby strengthening its position in the high-priority Indian market.
Source: cryptodality.co.uk
