Crypto Exchange Bitget Looks to Expand to India as Regulated Platform

by

As a researcher with a background in cryptocurrency and regulatory compliance, I am closely monitoring Bitget’s expansion into India. The country’s massive population and highly skilled talent make it an essential market for crypto trading platforms like Bitget. However, the regulatory landscape in India is complex, and compliance is a top priority for any company looking to serve customers there legally.

Bitget, a prominent crypto derivatives exchange, aims to broaden its reach into India, home to over a billion people, while adhering to the country’s regulatory framework. In a detailed update on X, Simran Alphonso, the company’s global communications head, disclosed that Bitget is in discussions with Indian regulators to secure a license for lawful operations within the region and serve its customers effectively.

Regulatory Pursuit in India

Alphonso shared that India represents a significant market for his company’s business solutions and they are actively working towards obtaining the necessary regulatory approval to establish a legal crypto trading platform.

“India holds great significance for Bitget. We’re diligently working through regulatory requirements to ensure our platform can cater to our Indian users.”

As a researcher exploring the dynamic landscape of blockchain and cryptocurrency, I’ve come across an intriguing description of a particular nation. Bitget referred to this country as an engaging “playground” for innovative technologies in this sector. The reason being, it boasts an enormous population and an abundance of highly skilled talent. Consequently, its substantial impact on the industry’s growth is noteworthy.

In the year 2022, India stood out among other nations with a significant surge in cryptocurrency usage. Based on statistics from Chainalysis, a leading blockchain analysis firm, India occupied the second position globally in terms of cryptocurrency transaction volume, trailing only behind the United States.

Global Compliance Efforts

Bitget announced that its efforts to obtain operational licenses in jurisdictions with well-defined regulatory structures have resulted in two licenses being granted to the company outside of India. The financial regulators in Poland and Lithuania have given their approval for Bitget to operate as a Virtual Asset Service Provider (VASP) within these European countries.

As a researcher studying the latest developments in the cryptocurrency market, I can share that Biget has announced its intent to expand into India’s growing market. The exchange is currently working on providing further details about its progress in the coming weeks. It is noteworthy that Indian users are already able to use Biget for crypto trading. Based on the company’s website, Biget is legally registered in India.

In April 2022, Bitget initiated support for Indian users as part of India’s new crypto tax regulations. Under this policy, traders are obligated to submit 30% of their income to the Central Board of Direct Taxes (CBDT).

As a crypto investor during that period, I was relieved to learn that the government granted offshore cryptocurrency service providers permission to legally operate within our borders, adhering to Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations.

Compliance Challenges and Setbacks

The Financial Intelligence Unit (FIU) uncovered non-compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations by certain offshore crypto exchanges, despite continuing to serve customers within the country.

In December 2023, the regulatory body ordered the Ministry of Electronics and Information Technology in our country to prohibit the access to the websites of nine crypto exchanges that were flouting the rules. The affected platforms were Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. As a result, these non-compliant exchanges had to cease their operations within our jurisdiction. Subsequently, the government imposed rigorous regulations, mandating the crypto exchanges to register with the Financial Intelligence Unit (FIU) before they could resume their activities within the nation.

In April 2024, reports suggest that Binance paid a fine of $2.2 million to the Indian regulatory body to comply with regulations and potentially resume operations in India as a licensed cryptocurrency exchange.

Read More

2024-07-03 16:10