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Due to strict tax policies, India has seen some slowdown in growth in the cryptocurrency sector. Industry leaders in India believe that cryptocurrency futures trading can be a great solution to help potential investors continue to trade cryptocurrencies without having to worry about their tax burden. In a conversation with Gadgets360, Nischal Shetty and Avinash Shekhar, veterans of the Indian Web3 space, discuss the issues surrounding the cryptocurrency tax regime in India and the introduction of services by cryptocurrency players that could clearly increase people’s interest in these highly volatile cryptocurrencies. emphasized the need to do so. asset.

According to ZebPay CEO Shetty and WazirX founder Shekhar, cryptocurrency derivatives have been a huge success, accounting for a significant portion of cryptocurrency-based trading volume. Citing several reasons for this, Shetty and Shekhar justified the timing of the launch of their own futures exchange platform ‘Pi42’, announced earlier this month.

“The cryptocurrency ecosystem is maturing and wants more sophisticated trading tools. Against this backdrop, India’s appetite for derivatives trading has also grown exponentially over the years,” Shetty said.

Elaborating on his claims, the ZebPay CEO noted that India contributed 90.7 billion smart contracts through derivatives trading in the global derivatives market in 2023. In this type of trading, the underlying asset provides value for the derivative, allowing traders to speculate on the price movements of the underlying asset and ultimately enter into trades.

In spot trading transactions, the holder trades at the current price of the token and pays 1% TDS on each trade, whereas in derivatives and futures trading, the holder holds the asset for a longer period, waiting for the asset to reach the speculated price point. You can keep it. This will help traders save the 1% TDS deduction that they face in spot trading.

“We are in the midst of a potential bull market. We believe it is important to create a path for investors who want to participate in the cryptocurrency market in a tax-efficient manner. The idea of ​​derivatives trading fits perfectly. Investors don’t have to own cryptocurrency themselves if they don’t want to, but they don’t want to be left behind. It’s a great way to get a glimpse into all the activity happening in the cryptocurrency market,” WazirX’s Shakhar told Gadgets360.

He pointed out that the government is considering reducing the TDS for all cryptocurrency transactions from 1% to 0.01%, but traders will still need to engage in routine trading activities. Revealing his findings from his experience, he says that young working Indians are very interested in staking, airdrop participation and referral programs along with traditional trading.

“Futures and derivatives are already an area of ​​growing interest in markets with low spreads and high liquidity. The modern investor is knowledgeable, well-read, and tech-savvy. There are investors who know how to build a diverse portfolio to achieve financial stability. The decentralized ecosystem has increased the preference for virtual digital butts and the variety of use cases has maintained user interest,” Shekhar added.

Both industry veterans aim to expand the Pi42 futures trading exchange, which debuted in India, to other international regions and capitalize on the demand for alternatives to traditional asset trading.

Cryptocurrencies are unregulated digital currencies, not legal tender, and are subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation provided or endorsed by NDTV. NDTV is not liable for any loss arising from investments based on perceived recommendations, forecasts or other information contained in the article.

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