Pi42 Launches INR-Margined Futures to Reduce 30% Tax Burden on Indian Crypto Traders

Pi42, a cryptocurrency exchange co-founded by industry veterans Nischal Shetty and Avinash Shekhar, has recently introduced INR-margined crypto futures. This move is aimed at addressing the significant tax burdens faced by crypto traders in India. The launch of this new product marks a strategic shift in the Indian crypto landscape, as it seeks to retain domestic trading activity by providing a more tax-efficient trading environment.

The introduction of INR-margined perpetual futures by Pi42 is a direct response to the high tax rates imposed on crypto trades in India. Currently, crypto traders in India are subject to a 30% capital gains tax and a 1% tax deducted at source (TDS) on crypto transactions. By offering perpetual futures trading without the need for conversion to USDT or the payment of TDS/VDA taxes, Pi42 aims to simplify the trading process and reduce the tax impact on traders.

Pi42's focus on compliance and security is evident in its approach to addressing Indian tax challenges. The platform's co-founder, Avinash Shekhar, emphasizes the importance of compliance with Indian regulatory standards. By eliminating the need for conversion into other currencies, Pi42 aims to retain Indian crypto trading volume domestically, potentially diminishing volumes on foreign exchanges.

The launch of INR-margined futures by Pi42 could have broader implications for the Indian crypto sector. The platform's focus on INR-based transactions could stimulate economic activity and liquidity in Indian markets. This innovation could reshape the regulatory conversation, encouraging more crypto solutions that are compliant with national regulations. The shift towards local currency usage suggests a move towards more tailored responses to India-specific financial laws and constraints.

As the Indian crypto sector continues to evolve, the adoption of compliant trading platforms like Pi42 could foster greater regulatory trust and user confidence. This step could be pivotal for the Indian market, potentially influencing future technological and financial strategies. By providing a more tax-efficient trading environment, Pi42 aims to increase the adoption of crypto trading in India, contributing to the growth and development of the sector.