Regulatory Compliance: The Key to India’s Crypto Future, Says Bitget COO
As cryptocurrency exchanges navigate an era of heightened global scrutiny, Bitget Chief Operating Officer Vugar Usi Zade has highlighted the twin pillars of regulatory compliance and innovation as essential for long-term success. Speaking at India Blockchain Week 2024, Zade emphasized the critical role of clear regulations in building trust and fostering the seamless integration of digital assets into mainstream financial systems.
The Importance of Compliance
With cryptocurrency adoption on the rise worldwide, exchanges face mounting pressure to prioritize compliance to enhance user safety and operational transparency. According to Zade, establishing “legal certainties” enables companies to align with regulatory frameworks while creating opportunities for collaboration with policymakers.
He specifically underscored the significance of robust Know Your Customer (KYC) protocols in combating fraud and ensuring transaction security. Leveraging cutting-edge artificial intelligence (AI) technologies, Bitget employs advanced tools to detect fraudulent activities, including identifying deepfakes and forged documents used in KYC processes.
Navigating India’s Regulatory Landscape
India’s crypto sector mirrors the global trend toward tighter oversight, driven by measures such as a 1% tax deducted at source (TDS) and a steep 30% tax on profits. While aimed at regulating the market, these policies have elicited mixed reactions from traders and investors.
Zade pointed out that regulatory clarity is “essential” for fostering a stable environment. However, he warned that overly stringent measures could drive participants toward bypassing official systems, creating potential risks for the ecosystem. To address these challenges, Bitget is actively engaging with Indian regulators to establish a compliant presence. The company plans to open a local office by the end of 2024, demonstrating its commitment to the Indian market.
Striking a Balance Between Innovation and Investor Protection
The challenge of balancing investor protection with market innovation is a recurring theme for cryptocurrency exchanges. Zade expressed optimism about shifting investment trends, moving away from speculative frenzy—like chasing the next 100x token—toward sustainable investment strategies such as dollar-cost averaging (DCA).
By prioritizing compliance-first measures and ensuring market transparency, Zade believes exchanges can encourage responsible investment practices, ultimately fostering the sector’s growth.
Building Trust for a Secure Future
For cryptocurrency exchanges like Bitget, the roadmap to a sustainable future hinges on trust built through regulatory compliance. By leveraging innovative technologies and aligning with evolving policies, exchanges can ensure user security and pave the way for mainstream adoption of digital assets in India and beyond.
As India continues to refine its regulatory framework, collaboration between industry stakeholders and policymakers will play a pivotal role in shaping the country’s crypto future.
