Cryptocurrency exchange Bitget is actively pursuing regulatory compliance in India and is now in active discussions with the country’s Financial Intelligence Unit (FIU) to secure registration as a Virtual Asset Service Provider (VASP).
This development was disclosed by Simran Alphonso, Bitget’s head of global communications, in a social media post on July 3, 2024.
Though it has a presence in the Indian market, Bitget faces challenges in onboarding new users due to restrictions arising from its lack of a VASP license. Alphonso pointed out that while existing users can access the Bitget app with full functionality, potential users encounter difficulties downloading the app from platforms like Google Play Store and the App Store.
Notably, Alphonso did not provide specifics on the range of cryptocurrency services currently available to Bitget’s existing users in India.
A VASP registration is crucial for Bitget as it ensures compliance with tax regulations and enhances operational transparency. The registration with FIU underpins consumer protection efforts, including mechanisms for dispute resolution, fraud compensation, and collaboration with law enforcement to combat scams, Alphonso added.
Alphonso added that this registration provides grounds for hosting community meetups, engaging with stakeholders, and conducting educational initiatives, thereby boosting the exchange’s credibility in the country.
Bitget’s move comes in the wake of recent regulatory actions against crypto and digital service providers in India, particularly foreign-based ones. In a notable case, the FIU recently fined Binance over 188.2 million rupees (approximately 2.25 million USD) for failing to register and comply with the country’s anti-money laundering (AML) regulations.
In December 2023, the FIU issued notices to several major crypto platforms, including Binance and KuCoin, following a directive from the Indian Ministry of Finance earlier that year. The regulator expressed concerns that many offshore entities serving Indian users were operating without proper registration, making it difficult to verify their compliance with the country’s Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks.
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