📌 The CEOs of India’s WazirX and Zebpay are working together to launch a new cryptocurrency venture.
– Shetty, founder of WazirX, and Shakhar, former CEO of Zebpay, said the new venture will be one of the most law-abiding exchanges in India. The exchange is compliant with the Prevention of Money Laundering Act (PMLA), local media noted.
Pi42 will allow more than 30 million crypto investors in India to participate in local currency derivatives trading.
Currently, the cryptocurrency spot market in India is between 30 million and 35 million. About 20-25% of that, or 7-10 million, are considered potential candidates for futures trading.
Pi42 has also applied for clearance from the Financial Intelligence Unit (FIU), an organization under the Department of Revenue.
The FIU’s recent regulatory action against unregistered persons has created demand for compliant alternatives, and we are committed to providing such an opportunity for cryptocurrency futures trading.”
According to the “Global Cryptocurrency Adoption Index to 2023” compiled by analytics platform Chainalysis, India is leading the way in terms of grassroots cryptocurrency penetration.
Despite the high level of cryptocurrency penetration, Indian investors are struggling to cope with the country’s tax and regulatory framework. Currently, India imposes a 30% tax on cryptocurrency profits, with another 1% withheld at source.
As a result, the report notes, many Indian users are turning to international cryptocurrency exchanges.
‘I think it is very important that you don’t have to worry about 1% TDS when trading futures,’ emphasizes Shetty. TDS affects almost all day traders and this is a great option for them.”
Pi42 has already launched a website and a beta version of its Android app. The platform will also offer instant withdrawals within a few weeks, Shekhar noted.
Nihal Shetty will lead the company’s growth strategy, while Avinash Shekhar will lead finance, compliance and operations.
According to the exchange’s website, it currently supports five tokens including bitcoin, ether, Solana, MATIC and XRP. It also allows retail investors to access the cryptocurrency market with up to 20% leverage and no expiration date.