Bitget COO Vugar Usi Zade emphasizes the importance of open dialogue and collaboration in shaping regulations that promote safety and foster crypto innovation.

Bitget, a global crypto exchange and Web3 firm, is currently working on obtaining registrations and approvals from the Indian government to establish its India office by New Year, according to COO Vugar Usi Zade. Zade, who visited India recently, stated that Bitget has been actively engaging with regulators for the past few months to ensure compliance for its local operations. In a discussion with ET’s Vinod Mahanta, Zade talks about Bitget’s plans for India, the impact of the Trump administration on cryptocurrencies, the ongoing bull run, and the evolving role of crypto in a post-AI world. Edited excerpts:

Q) Do you believe that crypto holds potential in countries like India where regulators are not supportive of digital currencies?

As a company, we strongly advocate for the importance of regulations in the crypto space. Recently, we have been in discussions with regulators in India to prioritize compliance. Binance has already obtained registration to operate in India, and we are hopeful to receive ours soon. India is ahead of many major economies like the US or China in terms of regulatory clarity on crypto. We are committed to growing responsibly by collaborating with regulators to ensure compliance and innovation in the Indian market.

The safety and security of customer assets, as well as preventing fraud and money laundering, are key priorities for regulators and companies like ours. We believe that through open dialogue and collaboration, we can establish a regulatory framework that promotes safety and fosters innovation in the crypto industry. India has great potential for crypto, and we are excited to be a part of this journey and serve Indian customers in the best and safest way possible.

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What are Bitget’s plans for India?

India is a strategic market for us, both in terms of talent and operations. We are actively setting up a local office and recruiting the necessary team members to ensure compliance and efficient operations. Our goal is to establish a strong local presence and transition from a globally managed approach to a more localized operation.

Initially, we plan to use builders and interns to establish our presence in various markets. As we expand and understand the market better, we will transition to a full-time local team to manage operations. However, our hiring and investment plans will depend on market evolution and competition. We aim for a strong entry in the Indian market amidst growing competition among global players.

How many users does Bitget currently have in India?

Currently, we have around 65,000 users in India. This number has been modest due to our recent focus on the market and the licensing process. Once we secure approvals and compliance, we are prepared to onboard Indian users again. We are making progress in discussions and aim to start operations before the end of the year, with a functional local office by the new year. In the first quarter of next year, we aim to expand our presence and serve Indian users more effectively.

Rules for crypto assets vary globally, with countries like France considering taxing unrealized gains on cryptocurrencies. What are your thoughts on this?

Taxing unrealized gains on crypto is a controversial and flawed approach, which could detract from innovation and growth in the industry. Such policies could discourage participation in the crypto ecosystem, leading to adverse effects on investor sentiment and market dynamics. Balancing fair regulations with sustainable growth is essential for fostering a vibrant crypto economy.

Do you believe the election of President Trump could impact the crypto industry?

The election of President Trump could mark a significant moment for the crypto industry, potentially signaling a shift in the US approach to cryptocurrencies. Trump’s business background may lead him to recognize the potential of cryptocurrencies as strategic assets to strengthen the US’s position in the global financial landscape. While Trump’s presidency could present opportunities for the crypto industry, it could also bring challenges, including potential tax policies to generate revenue from crypto gains.

Why are Dubai and the UAE emerging as crypto hubs?

Dubai and the UAE are becoming prominent hubs for the crypto industry due to factors such as zero-tax policies, entrepreneurial opportunities, progressive government stance on crypto, and ease of setting up businesses. These factors make Dubai an attractive destination for crypto ventures, especially compared to regions with complex regulatory frameworks. Additionally, the safety and stability offered by Dubai make it a preferred choice for Indian crypto users concerned about regulatory uncertainty.

After the WazirX hack, Indian investors are concerned about the safety of their funds in local exchanges. What safety measures does Bitget have in place?

Operating globally allows us to implement diverse safety protocols and maintain broader liquidity pools, reducing the risk of a single breach compromising the system. We have established one of the largest Protection Funds in the crypto industry, valued at approximately $600 million in Bitcoin. This fund acts as a safety net for our customers, compensating them in case of technical issues or exchange errors. We benefit from larger liquidity pools and advanced market-making capabilities, ensuring more stable prices and minimizing risks for our users.

Bitcoin recently reached $100,000. How long do you anticipate this bull run lasting?

Ideally, I hope this bull run continues longer than expected. Based on my predictions, Bitcoin could potentially reach $150,000 after a pullback to around $70,000. The duration and strength of the bull run depend on various factors, including US government policies, institutional investments, global developments, and market dynamics. Optimism for the bull run’s continuation is tempered by unpredictable global events, underscoring the need for a balanced approach towards market trends.

A lot of Indian crypto investors have suffered losses from investing in questionable tokens. How can investors safely invest in altcoins?

Investing in altcoins and meme coins carries significant risks, especially in the context of misleading schemes and fraudulent practices prevalent in the crypto space. To invest safely, individuals should conduct thorough research, understand the fundamentals of the projects they are investing in, and be cautious of high-risk investments promising unrealistic returns. Additionally, educating themselves about market trends, regulations, and security measures can help investors make informed decisions and avoid falling prey to scams and fraud.

Critics argue that crypto lacks practical use cases and real utility, dismissing it as a speculative asset. What is your perspective on this?

While it’s true that some projects lack utility and focus more on speculative value, many cryptocurrencies and blockchain technologies have real-world applications and potential for innovation. The evolving landscape of crypto and blockchain presents opportunities for disruptive solutions in various industries, including finance, supply chain, and identity verification. As the industry matures, we are likely to see more practical use cases emerge, challenging the notion that crypto is solely a speculative asset.

What will be the role of crypto in a post-AI world?

Blockchain technology holds immense potential in enhancing AI capabilities by ensuring data authentication and transparency. Blockchain can help distinguish between human-created and AI-generated data, improving the accuracy and reliability of AI systems. As crypto and AI coexist, we may witness innovative solutions that integrate blockchain and AI technologies to drive industry growth and efficiency. By leveraging the strengths of both technologies, we can create a more secure and efficient digital ecosystem that benefits stakeholders across various sectors.

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