As the global cryptocurrency market faces mounting regulatory challenges, Bitget’s Chief Operating Officer, Vugar Usi Zade, emphasized the importance of compliance and innovation in ensuring the sustainable growth of the industry. During an interview at India Blockchain Week 2024, Zade discussed how regulatory clarity is essential for fostering trust and ensuring the safe integration of digital finance into mainstream systems.

In India, where cryptocurrency adoption is steadily rising, the country’s evolving taxation and compliance policies are presenting unique challenges for exchanges and investors. Zade pointed out that “legal certainties” help companies work collaboratively with regulators, ensuring operations remain compliant and secure. He stressed that a clear regulatory framework can help build trust with users, a crucial factor in the rapidly growing sector.

Trust Through Compliance

As cryptocurrency adoption accelerates globally, Zade emphasized that exchanges must prioritize compliance to protect users and build confidence in the market. He highlighted the importance of Know Your Customer (KYC) protocols in preventing fraud and ensuring secure transactions. Zade also mentioned the growing role of artificial intelligence in detecting fraud, noting how AI can be used to identify deepfakes or other fraudulent activities involving fake documents.

India’s Crypto Regulatory Landscape

India’s crypto market has been facing increasing regulatory oversight, with policies such as a 1% tax deducted at source (TDS) and a steep 30% tax on profits. These measures have sparked mixed reactions from investors and traders, with some seeing them as a barrier to growth, while others view them as necessary steps toward legitimizing the industry.

Balancing Investor Protection with Innovation

Zade acknowledged the challenge of balancing user protection with innovation, which is a key issue for cryptocurrency exchanges. He noted that while many influencers focus on speculative “next 100x tokens,” there is a growing hope that discussions will shift towards more sustainable investment practices, such as dollar-cost-averaging. By implementing compliance-first measures and fostering transparency, Zade believes exchanges can help steer the market toward more responsible investment approaches, moving away from short-term speculative gains.

As the crypto industry faces an increasingly complex regulatory environment, the focus on compliance, security, and long-term sustainability will be crucial for its future success, particularly in emerging markets like India.