US-based cryptocurrency custodian BitGo is in talks with India's Financial Intelligence Unit (FIU) to expand into India's growing digital asset market.
During India Blockchain Week, BitGo's COO Chen Fang confirmed that the company is in “active dialogue” with FIU about entering India's multi-billion dollar cryptocurrency space.
India ranks first in Chainalysis' 2024 Cryptocurrency Adoption Index, making it a major player in the global crypto market despite recent regulatory challenges such as the ban on offshore exchanges. There is. According to Statista, India's cryptocurrency market is estimated to generate $6.6 billion in revenue by 2024.
Although BitGo is not yet active in India, Fang acknowledged the company's interest in the market. “There are active conversations between us and FIU about entering this space,” he said.
The move comes shortly after BitGo announced plans to expand its services to include retail investors after more than a decade of focusing on institutional customers. The California-based company has revealed plans to launch a global version of its digital asset solution, offering services similar to cryptocurrency exchanges. These include trading, staking and wallet services, as well as regulated storage options through cold storage and self-storage solutions.
BitGo currently serves more than 1,500 customers in more than 50 countries, including major companies like Nike and more than 150 crypto exchanges, but has traditionally focused on institutional customers. . However, as competition intensifies in the institutional market, BitGo is now expanding into the retail space to address the gap in secure custody solutions and concerns about exchange reliability for retail cryptocurrency users. .
Additionally, BitGo continues to be the primary custodian for Bitcoin exchange-traded funds (ETFs) in the United States, providing cold storage for major issuers such as Valkyrie, Hashdex, and 21Shares. The company's valuation reached $1.75 billion in August 2023 after a $100 million Series C funding round.
India's regulatory landscape is evolving. In December 2023, the FIU found nine foreign cryptocurrency exchanges, including Binance, Kraken, and KuCoin, to be in violation of the country's anti-money laundering laws (AML) and blocked their websites and mobile apps. Connected. Binance later managed to come into compliance with an $86 million tax penalty.
