On Wednesday, February 7, the Indian crypto industry welcomed a new addition with the launch of the Pi42 crypto-INR Futures Exchange. Founded by Zebpay CEO Avinash Shekhar and WazirX founder Nischal Shetty, this platform aims to provide Indian users with a means to engage in crypto trading without being burdened by the one percent TDS (Tax Deducted at Source) on each transaction, a requirement imposed by the Indian finance ministry two years ago.
The introduction of Pi42 comes amidst growing dissatisfaction within the crypto community regarding the existing tax laws, which have stifled the sector’s growth despite calls for revisions. By offering futures trading, investors can speculate on future crypto asset prices, enabling them to hold onto their assets until they reach desired price points. This not only reduces TDS-related losses but also provides various advantages such as improved liquidity, leveraging opportunities, and potential for higher profits.
Nischal Shetty, co-founder of Pi42, emphasized the significance of crypto derivatives trading, citing its higher trading volumes compared to spot trading globally. He highlighted the benefits for investors, including tax efficiency, in an official announcement.
In recent months, India has intensified its oversight of the Web3 sector, introducing regulations to stabilize the industry and mitigate risks associated with virtual assets. One such requirement mandates crypto firms to register with India’s Financial Intelligence Unit (FIU). Pi42 has already fulfilled this requirement, allowing Indian users to explore the platform.
Avinash Shekhar expressed optimism about Pi42’s potential to revitalize the crypto industry in India, offering tax-efficient and regulatory-compliant trading options to modern-day investors. The Pi42 app is initially available for Android users in India, with plans for iOS availability in the near future. Shetty and Shekhar also aim to expand the exchange to international markets in the coming months.
Despite the slump in growth experienced by the Indian crypto community over the past two years, industry leaders remain hopeful about the future. The launch of Pi42 signifies a step towards addressing regulatory challenges and providing a conducive environment for crypto enthusiasts to thrive.
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