- Pi42 launches INR-settled futures, reducing tax liabilities.
- Co-founders from leading Indian crypto exchanges.
- Aims to minimize tax impact on traders.
Pi42, co-founded by former Indian crypto exchange leaders, introduces INR-margined perpetual futures to reduce tax burdens on Indian traders by avoiding direct crypto transactions.
Pi42’s platform provides a legal tax advantage, seeking to keep Indian crypto trading within the country and mitigate offshore migration.
Pi42 was established by Nischal Shetty and Avinash Shekhar, previously CEOs of WazirX and ZebPay, targeting India’s tax-affected market by offering INR-based futures contracts. The exchange highlights regulatory compliance and aims to support the local crypto ecosystem.
“Trading Crypto-INR perpetual futures offer tax efficiency as it doesn’t involve actual cryptocurrency or virtual digital asset transactions, reducing TDS and VDA taxes.” — Avinash Shekhar, Co-founder, Pi42
Pi42 shields traders from India’s onerous 1% TDS and 30% capital gains tax on crypto profits. By providing INR-based margin futures, it enables tax-efficient trading and reduces the need for Indian investors to resort to international platforms.
Pi42’s model has encouraged other Indian exchanges to explore similar tax-efficient mechanisms. As the regulatory framework evolves, Pi42 remains committed to adhering to India’s financial guidelines, aiming for compliance with the Financial Intelligence Unit.
Experts suggest that INR-margined futures could set a new standard in the Indian crypto market by potentially driving higher local liquidity without compromising on regulatory adherence. This approach could influence other markets where heavy taxation on cryptocurrencies is prevalent.
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