Pi42, co-founded by former leaders of major Indian crypto exchanges, has introduced a new type of futures contract designed to reduce tax burdens on traders in India.
Pi42 and its Founders
Pi42 was founded by Nischal Shetty and Avinash Shekhar, previously CEOs of WazirX and ZebPay. The platform aims to offer INR-based futures contracts to support the local market and regulatory compliance.
Benefits of INR-Margined Futures
Pi42 provides margin futures that avoid direct cryptocurrency transactions, thus lowering income and digital asset taxes. "Trading Crypto-INR perpetual futures offer tax efficiency as it doesn't involve actual cryptocurrency transactions, reducing TDS and VDA taxes," said Avinash Shekhar, co-founder of Pi42.
Outlook for the Indian Crypto Market
Pi42's model could encourage other Indian exchanges to explore similar mechanisms to mitigate tax burdens. As the regulatory framework evolves, expectations are that this could enhance local liquidity without compromising adherence to regulations.
The launch of INR-settled futures by Pi42 may represent a significant step for the Indian crypto market, offering new opportunities for local traders and strengthening their position internationally.
