“Legal certainties create opportunities for companies to collaborate with regulators and operate compliantly,” said Usi Zade, Chief Operating Officer at Bitget.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
The crypto industry is evolving fast, but staying compliant with regulations is key to unlocking its full potential, especially in India. As the crypto adoption grows, ensuring legal clarity is essential for balancing user protection with market innovation, according to Vugar Usi Zade, Chief Operating Officer at Bitget.
Speaking during the India Blockchain Week 2024, Zade stressed that a clear regulatory framework fosters trust and helps crypto exchanges integrate smoothly into the financial system. Legal certainty, he explained, paves the way for companies to work collaboratively with regulators and maintain compliance.
“Legal certainties create opportunities for companies to collaborate with regulators and operate compliantly,” Zade said.
India’s cryptocurrency landscape mirrors a global trend: increasing oversight by governments to make trading and investment safer. But it also presents unique challenges. Policies such as a 1% tax deducted at source (TDS) and a hefty 30% tax on profits have left many Indian investors and traders divided over their implications.
In the crypto world, safety comes first. Zade underscored the importance of strict Know Your Customer (KYC) protocols, saying they are “vital for preventing fraudulent activity and securing transactions in the long term”. These measures, designed to identify and verify users, act as the first line of defense against fraud.
Artificial intelligence is playing a bigger role in boosting security. Bitget uses AI tools to identify fake documents and uncover bad actors, helping the platform stay one step ahead of scammers. The technology, Zade noted, is also adept at flagging deepfakes – an increasingly common threat in the digital realm.
India’s growing crypto market offers a mix of optimism and hurdles. On the one hand, regulations are making the space safer; on the other, high taxes are dampening enthusiasm among casual investors. Despite this, Bitget remains bullish on the region’s prospects.
Bitget has been actively engaging with Indian regulators to carve out a compliant path forward. The exchange plans to open a local office before the end of 2024, a move that signals its long-term commitment to India’s burgeoning crypto market. Zade believes balancing innovation with user protections is a core challenge for global crypto platforms, including India.
He also expressed concerns about the role of influencers in the crypto ecosystem. Many social media personalities, he observed, often push speculative tokens, promising outsized returns. “Most influencers seem to talk about the next 100x token on YouTube or X,” Zade said.
However, he hopes to see a shift toward sustainable investment discussions, such as dollar-cost averaging, emphasizing steady, long-term growth over quick wins.
Bitget’s strategy aligns with its vision to direct users toward a more structured investment approach. Zade argued that exchanges need to prioritize compliance and transparency to foster trust and attract serious investors, adding that the goal should be “an investment approach rather than trying to milk the market.”
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
