The company announced on July 3 that it was in talks with India’s Financial Intelligence unit (FIU) to obtain the necessary license to operate in compliance with local laws.

This move shows that India, which is leading in the cryptocurrency adoption rate in 2023, has become a strategic market for Bitget. However, even though Bitget is currently operating in India, it is facing difficulty in attracting new users as it is not registered as a Virtual Asset Service Provider (VASP).

Simran Alphonso, Head of Global Communications at Bitget, said in a statement on the subject: “India is one of the top priority markets for us. We are actively monitoring regulations to ensure that our platform is compliant to serve our users in India.”

This initiative by Bitget comes right after the return of cryptocurrency exchange giant Binance to India. Binance had faced a 4-month ban by the country’s Financial Intelligence unit (FIU). This ban affected nine foreign exchanges, including KuCoin and Binance. KuCoin and Binance subsequently complied with the regulations, while OKX ceased operations in India.

The main reason for this ban by the government was to prevent a significant tax loss from digital asset trading by unregistered foreign exchanges, estimated at INR 3000 crore (approximately USD 361.45 million) annually.

With VASP registration, Bitget aims to comply with the rules applicable to local exchanges. These rules include the 1% source tax deduction (TDS) that KuCoin and other Indian exchanges already apply.

Cryptocurrency regulations in India are still a knot to be untied. There are differing views among regulators on how to handle this rapidly evolving industry.

Indian Finance Minister Nirmala Sitharaman is advocating international cooperation to develop a comprehensive framework for cryptocurrencies, recommending that governments recognize the potential benefits of blockchain technology. However, in response, the Reserve Bank of India continues to demand a complete ban on digital assets.

Bitget’s latest move also reveals the uncertainty in the Indian cryptocurrency market. On the one hand, the company is trying to gain a foothold in India, which it sees as an attractive market with its leadership in cryptocurrency adoption. On the other hand, he is faced with opposing views on cryptocurrency from different ministries of the government.

Despite this uncertainty, Bitget’s initiative for VASP registration points to positive developments in the Indian cryptocurrency market. Thus, a safer and more orderly environment can be created for both stock exchanges and investors.

It is not yet clear what the final decision will be regarding India’s cryptocurrency regulations. However, moves by big players like Bitget give hope that the future of this industry can be bright in India as well.