Originally published on: December 06, 2024
The landscape of cryptocurrency exchanges is rapidly evolving under the pressure of global regulatory standards, spanning from user protection to operational transparency. In India, as the population increasingly embraces cryptocurrencies, the country is grappling with tax and compliance policy adjustments.
During the India Blockchain Week 2024, Cointelegraph caught up with Bitget’s Chief Operating Officer, Vugar Usi Zade, to discuss the critical role of regulatory clarity in building trust and facilitating the secure integration of digital finance into mainstream systems.
Zade underscored the significance of “legal certainties” in fostering collaboration between companies and regulators while ensuring compliance. As the adoption of cryptocurrencies surges globally, exchanges must prioritize compliance measures to establish trust and safeguard user security.
According to Zade, Know Your Customer (KYC) protocols play a crucial role in preventing fraud and ensuring the long-term security of transactions. He also mentioned the increasing use of artificial intelligence to detect fraudulent activities, emphasizing the importance of leveraging AI to identify deepfakes and bad actors using fake documents.
While India aligns with the global trend of heightened regulatory oversight in the crypto market, policies like the 1% tax deducted at source (TDS) and a steep 30% tax on profits have elicited mixed responses from investors and traders.
Balancing user protection with innovation poses a central challenge for crypto exchanges, as noted by Bitget’s COO. Zade expressed hope for a shift towards sustainable investment practices like dollar-cost-averaging, calling for a more responsible approach in the industry.
By adopting a compliance-first mindset and promoting transparency, exchanges can steer the market towards a more investment-oriented trajectory, in contrast to short-term speculative practices.
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