Pi42 Launches INR-Settled Futures to Cut Indian Traders Taxes by 30%

Pi42, a newly established cryptocurrency exchange, has introduced INR-settled futures contracts to help Indian traders minimize their tax liabilities. The platform, co-founded by Nischal Shetty and Avinash Shekhar, former CEOs of prominent Indian crypto exchanges WazirX and ZebPay, aims to provide a legal tax advantage by avoiding direct crypto transactions. This move is designed to keep Indian crypto trading within the country and mitigate the migration of traders to offshore platforms.

By offering INR-margined perpetual futures, Pi42 seeks to reduce the tax burden on Indian traders. The exchange highlights its commitment to regulatory compliance and aims to support the local crypto ecosystem. According to Avinash Shekhar, co-founder of Pi42, "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." This approach shields traders from India's onerous 1% TDS and 30% capital gains tax on crypto profits, enabling tax-efficient trading and reducing the need for Indian investors to resort to international platforms.

Pi42's innovative model has encouraged other Indian exchanges to explore similar tax-efficient mechanisms. As the regulatory framework in India continues to evolve, Pi42 remains committed to adhering to the country'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, providing a blueprint for tax-efficient trading solutions.