Indian cryptocurrency pioneers Nischal Shetty and Avinash Shekhar have joined forces to introduce their latest venture, Pi42, a crypto-INR perpetual futures exchange.
Shetty, the founder of WazirX, and Shekhar, the former CEO of Zebpay, have emphasized that Pi42 will prioritize adherence to legal compliance standards in India. The exchange is designed to comply with the country’s Prevention of Money Laundering Act (PMLA) guidelines, as reported by local media.
Pi42 aims to cater to over 30 million crypto investors in India by providing a platform for derivatives trading in the local currency.
Shetty stated, “The current spot market for crypto in India involves around 30 to 35 million people. Approximately 20% to 25% of this, or 7 to 10 million people, are seen as potential candidates for futures trading.”
Additionally, Pi42 has sought approval from the Financial Intelligence Unit (FIU), an organization under the Department of Revenue, further underlining its commitment to regulatory compliance.
India’s Taxation Policy and Crypto Adoption Challenges According to Chainalysis’ 2023 Global Crypto Adoption Index, India ranks highly in terms of grassroots crypto adoption. However, Indian investors face challenges due to the country’s tax regime and regulatory environment, with crypto gains taxed at 30% and a 1% deduction at the source.
Shetty highlighted the significance of futures trading in bypassing the 1% Tax Deducted at Source (TDS) imposed on crypto transactions, offering a viable alternative for traders affected by this levy.
Beta Launch and Future Plans Pi42 has already rolled out the beta version of its website and Android app. The platform aims to introduce instant withdrawals in the upcoming weeks, as per Shekhar’s announcement.
Nischal Shetty will spearhead the growth strategy of the firm, while Avinash Shekhar will oversee finance, regulatory compliance, and operations.
The exchange currently supports five tokens, including Bitcoin, Ether, Solana, MATIC, and XRP. Retail investors will have access to the crypto market with a leverage of up to 20% and no expiry, according to information provided on the platform’s website.
