BitGo is currently in conversation with Indian regulators in order to establish a presence in the country’s expanding cryptocurrency market. The company’s objective is to satisfy stringent compliance standards and provide institutional services.
The Indian government is intensifying its regulatory supervision of the cryptocurrency industry with the aim of identifying substantial tax evasion cases involving major exchanges and engaging in discussions with global platforms that are interested in entering its fast-growing market. Recent investigations have disclosed that exchanges such as Binance and WazirX have failed to pay over ₹824 crore ($97 million) in GST. Meanwhile, BitGo and other platforms are aggressively investigating opportunities to expand into India’s multibillion-dollar crypto sector, despite the strict compliance requirements.
During the India Blockchain Week, Chen Fang, the Chief Operating Officer at BitGo, disclosed the company’s objectives, underscoring the platform’s interest in navigating the intricate regulatory landscape of India. “We are not currently operating in the Indian market,” stated Fang. “We are present here because we are interested in this market. There have been discussions between the FIU and us regarding the possibility of entering this sphere.”
Despite the restrictive measures on offshore crypto exchanges, India’s grassroots enthusiasm is evident in its position at the top of Chainalysis’ 2024 crypto adoption index.
Foreign platforms are the primary focus of India’s stringent posture on cryptocurrency operations. The FIU deemed nine international cryptocurrency exchanges to be in violation of the country’s AML regulations in December 2023. Included in the embargo were prominent entities such as Gate.io, Kraken, Bitstamp, and Binance. Additionally, the classification resulted in the prohibition of their websites and mobile applications, which effectively restricted Indian users’ access to these platforms.
On the other hand, Binance was able to reintegrate into the Indian market by complying with regulatory requirements, despite incurring an $86 million tax penalty. This development underscores the obstacles that global firms face when attempting to enter one of the world’s fastest-growing crypto economies.
The challenge for BitGo is to navigate these stringent compliance requirements. The platform, which recently introduced a global service to retail clients, is required to obtain complete registration under the local laws of India in order to conduct business in the region.
BitGo is a California-based company with a global workforce of 460 employees, 150 of whom are located in its Bangalore office. This position is well-suited for the company to enter the Indian market. The platform offers a variety of services, such as physical custody solutions and trading, to institutional clients in over 50 countries.
Seven jurisdictions, including the United States, Germany, South Korea, and Singapore, comprise BitGo’s physical storage infrastructure. In the past few months, the organization has acquired licenses in critical markets, such as a crypto exchange license in Singapore. The provision of its services in India would constitute an additional strategic pillar to its global operations.
Also Read: India’s Top Crypto Advocacy Group Expects Major Regulation
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