Bitget COO Highlights Regulation Compliance as Essential for India’s Crypto Growth
The crypto industry is rapidly evolving, with compliance to regulations being crucial for its potential, particularly in India. As adoption increases, legal clarity is vital for ensuring user protection while fostering market innovation, according to Vugar Usi Zade, Chief Operating Officer at Bitget.
During the India Blockchain Week 2024, Zade emphasized that a clear regulatory framework builds trust and facilitates the integration of crypto exchanges into the financial system. Legal certainty enables companies to collaborate with regulators and maintain compliance.
“Legal certainties create opportunities for companies to collaborate with regulators and operate compliantly,” Zade stated.
India’s cryptocurrency environment reflects a global trend of heightened government oversight aimed at enhancing trading and investment safety. However, it faces unique challenges. Policies like a 1% tax deducted at source (TDS) and a substantial 30% tax on profits have led to divided opinions among Indian investors and traders regarding their impacts.
User Security Is Non-Negotiable
Safety is paramount in the crypto sector. Zade highlighted the necessity of strict Know Your Customer (KYC) protocols, stating they are “vital for preventing fraudulent activity and securing transactions in the long term.” These measures serve as the first line of defense against fraud by identifying and verifying users.
Artificial intelligence is increasingly enhancing security measures. Bitget utilizes AI tools to detect fake documents and identify malicious actors, keeping the platform ahead of scammers. Zade noted that this technology also effectively flags deepfakes, which are becoming more prevalent.
India's expanding crypto market presents both opportunities and challenges. While regulations improve safety, high taxes may discourage casual investors. Nevertheless, Bitget remains optimistic about the region's future.
Bitget’s Big Plans for India
Bitget is actively engaging with Indian regulators to establish a compliant operational framework. The exchange intends to open a local office by the end of 2024, indicating its long-term commitment to India's growing crypto market. Zade views balancing innovation with user protection as a key challenge for global crypto platforms, including those in India.
Zade expressed concerns about influencers in the crypto space, noting that many promote speculative tokens with promises of high returns. “Most influencers seem to talk about the next 100x token on YouTube or X,” he remarked.
He hopes for a shift toward sustainable investment discussions, such as dollar-cost averaging, focusing on steady, long-term growth rather than quick gains.
Bitget’s strategy aims to guide users toward a more structured investment approach. Zade contended that exchanges must prioritize compliance and transparency to build trust and attract serious investors, advocating for an investment mindset instead of market exploitation.