- Crypto exchange Bitget is aiming to establish a regulated foothold in India.
- Indian financial authorities are increasing oversight on the local crypto industry.
- Other exchanges have also faced scrutiny in the region.
Regulatory standards are evolving globally, marked by increased efforts by authorities to gain stronger oversight on the crypto industry. Not left behind, India‘s regulatory authorities are tightening compliance standards for service providers within the region, resulting in sanctions and disruption of services for non-compliant providers.
Crypto exchange Bitget is the latest entity impacted by these regulatory changes, with its users now facing restrictions on its services, prompting a flurry of efforts to address its challenges.
Bitget Seeks Regulated Presence in India
Addressing the limitations faced by its user base in the region, Bitget India took to social media platform X to assert its ongoing efforts to resolve the current issues.
The exchange emphasized that it is exploring ways to ensure compliance with local standards, to faciliatate the provision of seamless service to users in the region.
“We are aware of the current difficulty in accessing the Bitget platform in India. We‘re actively exploring ways to serve the region while ensuring our platform meets the region‘s compliance requirements,” stated Bitget India.The exchange’s statement followed user complaints about the inability to access its platform in India, raising concerns about regulatory restrictions by authorities amid ongoing reforms in the local crypto industry.
Bitget further assured the safety of users assets, emphasizing its commitment to providing a regulated and compliant platform for users. However, the exchange is not the first to experience regulatory restrictions in the region.
India vs Crypto Exchanges
Earlier this year, the Indian financial authority sanctioned offshore crypto exchanges, alleging illegal operations and failure to adhere to local regulatory requirements.
The sanctions, enforced by the Financial Intelligence Unit (FIU-IND), mandate that crypto exchanges facilitating exchanges or transfers of cryptocurrency must register with the unit.
Among those impacted is crypto exchange Binance, which came under scrutiny in January 2024, resulting in a months-long suspension of its services. The Indian Financial Intelligence Unit (FIU) also recently imposed a hefty $2.25 million penalty on the exchange, accusing it of violating India’s Prevention of Money Laundering Act (PMLA).
Other crypto service providers, including OKX, have also opted to exit the market due to their inability to navigate its regulatory standards, while others such as Kraken and Bitfinex are facing service restrictions on their platforms.
On the Flipside
- On April 5, 2024 Kucoin became India’s first compliant crypto exchange.
- Binance reportedly recently collaborated with Indian authorities to recover stolen funds of up to $10 million.
- The Indian government enforces a 30 tax on crypto income within the region.
Why This Matters
Bitget’s ability to successfully navigate discourse with India’s financial authorities will determine the continuation of its services within the region. Given the strict stance adopted by the authorities, failure to secure a regulatory license in due time may result in the end of Bitget’s operations in India.
Hopes are brewing for Binance to return to India, read here to find out more:
Binance Likely to Resume Operations in India: Here’s Why
Discover more about the collaboration between Chainlink and these two financial institutions:
How Chainlink Powers TradFi Tokenization with Fidelity, Sygnum
