In the realm of finance and investment, the winds of change are blowing stronger than ever, and at the forefront of this revolution lies the burgeoning crypto sector. However, in a country like India, where strict tax policies have cast a shadow over the crypto landscape, the growth of this promising industry has been stunted. Nevertheless, amidst the challenges, a beacon of hope emerges in the form of futures trading—a solution heralded by industry stalwarts Nischal Shetty and Avinash Shekhar.
In a candid conversation with Gadgets360, Shetty and Shekhar, veterans of the Indian Web3 arena, shed light on the pressing issues plaguing India’s crypto tax regime and the urgent need for innovative solutions to reignite investor interest in these volatile yet lucrative digital assets. Their brainchild, the futures exchange platform ‘Pi42,’ comes as a timely response to the evolving needs of the crypto ecosystem.
The rationale behind Pi42’s launch lies in the resounding success of crypto derivatives, which have captured a significant portion of the market’s trading volume. Shekhar, drawing from his experience as the former CEO of ZebPay, emphasizes the maturation of the crypto ecosystem and the growing demand for sophisticated trading tools among Indian investors. He underscores India’s substantial contribution to the global derivatives market, citing the staggering figure of 90.7 billion smart contracts traded in 2023 alone.
Delving deeper into the mechanics of derivatives trading, Shekhar elucidates how it offers a tax-efficient alternative to spot trading. Unlike spot transactions, where holders incur a one percent TDS on each trade based on current token prices, derivatives trading allows investors to speculate on price movements over time, thereby mitigating tax liabilities. This tax-saving advantage becomes particularly pertinent as India contemplates reducing the TDS for all crypto transactions, reflecting the government’s evolving stance on digital assets.
Shetty echoes Shekhar’s sentiments, highlighting the impending bull market and the imperative to provide investors with avenues for tax-efficient participation in the crypto market. He underscores the appeal of derivatives trading as a means for investors to engage with the crypto market without direct ownership, thus democratizing access to this transformative asset class.
Moreover, both industry veterans recognize the changing landscape of investment behavior among young Indians, who exhibit a keen interest in diverse crypto activities beyond traditional trading. From staking and participating in airdrops to referral programs, this digitally savvy cohort is driving the adoption of virtual assets and fueling the demand for innovative financial instruments like futures and derivatives.
As Pi42 makes its debut in India, Shetty and Shekhar have their sights set on international expansion, capitalizing on the growing demand for alternative asset trading platforms worldwide. With lower spreads and highly liquid markets, futures trading represents a paradigm shift in investment strategy, catering to the needs of a new generation of investors seeking financial security in the decentralized realm of cryptocurrencies.
India navigates its regulatory landscape and embraces the transformative potential of cryptocurrencies, futures trading emerges as a beacon of opportunity, offering investors a tax-efficient pathway to participate in the crypto revolution. With pioneers like Shetty and Shekhar leading the charge, the future of crypto in India looks promising, poised for exponential growth and widespread adoption on the global stage.
Shekhar echoed these sentiments, highlighting the growing appeal of futures and derivatives, characterized by lower spread and highly liquid markets. Modern-day investors, he argued, are tech-savvy and well-informed, building diversified portfolios for financial security. The decentralization of the crypto ecosystem and its diverse use cases contribute to the sustained interest of users.
Looking ahead, both Shetty and Shekhar have ambitious plans to expand the Pi42 Futures trading exchange beyond India, capitalizing on the demand for alternative assets trading worldwide. As they venture into international locations, Pi42 Futures aims to be at the forefront of the evolving crypto landscape, offering a tax-efficient gateway for investors to explore the exciting opportunities within the crypto market.
The launch of Pi42 Futures represents a significant milestone in the Indian crypto space, providing a compelling solution to navigate the challenges posed by stringent tax policies. As the crypto industry continues to evolve, futures trading emerges as a beacon of hope, offering investors a tax-efficient avenue to participate in the crypto revolution.