Cryptocurrency exchanges and the broader industry face increasing global regulatory pressure, with compliance measures ranging from user security to transparent operations.
In India, similar challenges have emerged as its population steadily adopts cryptocurrencies and adapts its taxation and compliance policies.
In an interview with Cointelegraph at India Blockchain Week 2024, Bitget chief operating officer Vugar Usi Zade discussed the importance of regulatory clarity for fostering trust and ensuring the safe integration of digital finance into mainstream systems.
“Legal certainties,” Zade said, create opportunities for companies to collaborate with regulators and operate compliantly.
Related: Bitget launches BitEXC customized crypto exchange in Vietnam
Trust through compliance
As cryptocurrency adoption accelerates worldwide, exchanges are tasked with prioritizing compliance to build trust and ensure user safety.
Zade highlighted Know Your Customer (KYC) protocols as vital for preventing fraudulent activity and securing transactions “in the long term.”
On the topic of KYC, the exec also noted the strong use of artificial intelligence tech to detect fraudulent actions, using AI “to identify deepfakes or bad actors” that attempt to KYC using fake documents.
Related: In India, adoption metrics don’t match on-ground reality
India crypto regulation
India’s crypto market reflects the global trend of increasing regulatory oversightPolicies such as a 1% tax deducted at source (TDS) and a steep 30% tax on profits have drawn mixed reactions from investors and traders.
Zade points out that regulatory clarity is “essential” but said that the unintended consequences of such potentially stark regulatory measures could “push people toward bypassing the system.”
He explained that Bitget is actively working with Indian regulators to establish a compliant presence in the country, with plans to open a local office “before the end of the year.”
Related: BitGo in talks to launch services in India
Investor-Innovation balance
In the interview, the Bitget co-founder also balanced user protections with innovation as a central challenge for crypto exchanges.
Zade said most “influencers” discuss the next 100x token on YouTube or X but hopes that “in the near future, we will see more of a sustainable investment like dollar-cost-averaging.”
By implementing more compliance-first measures and transparency in the market, Zade believes exchanges can help move toward this investment direction “rather than trying to milk the market.”
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