In an exclusive interview with BitcoinWorld, we got the chance to speak with Avinash Shekhar, CoFounder & CEO, Pi42 

Pi42 has rapidly become a major player in India’s crypto landscape with its Crypto-INR perpetual futures. What inspired the creation of Pi42, and what do you believe sets it apart from other crypto exchanges in India and globally?

Indian investors wanted a solution that not only provides a range of derivatives but also ensures compliance, tax efficiency, and a user-friendly experience within the domestic context.

India lacked a comprehensive platform that allowed users to trade with both tax-saving benefits and in their local currency (INR) as well as crypto futures. Previously, traders were limited to using USDT for transactions. Pi42 is the first platform in India to provide this flexibility, enabling users to trade in INR. We identified a significant opportunity in the market due to this gap, especially considering the dissatisfaction among Indian traders with the heavy taxes imposed on crypto transactions.

With over 50,000 users and crossing INR 100 crore in daily trading volume, Pi42 has achieved impressive growth. What key factors do you attribute to this rapid expansion, and how do you plan to sustain this growth trajectory?

Focus on educating users on crypto, coffee catchups in tier 2 – tier 3 cities

Right practices to enter crypto and educating Indians in crypto market/ futures

We currently have a growing community of 50,000 users on our platform. While we’ve hit significant milestones, including trading volumes of ₹100 crore on multiple occasions, it’s important to note that these achievements are also driven by favorable market conditions and the user-friendly experience we offer, allowing seamless trading in domestic currency. Our primary focus has always been on empowering Indian users with the knowledge and tools for compliant and responsible crypto futures trading. To support this, we’ve organized a series of educational initiatives, particularly in Tier 2 and Tier 3 cities across India. We remain committed to fostering responsible trading practices and guiding Indian users in navigating the crypto market, especially in the evolving landscape of crypto futures.

Will Pi42 launch its own token in near future? 

Our platform currently lists over 200 tokens, available for trading in both INR and USDT markets, offering users a wide range of options and flexibility. While we’re excited about the potential launch of Pi42’s own token, we believe it’s essential to prioritize the preferences of our community. We highly value user feedback, and if there is significant interest in a dedicated Pi42 token, we are fully equipped to make it a reality. However, our current focus remains on maximizing the growth and engagement of our community.

Pi42 offers significant tax advantages to its users through Crypto-INR perpetual futures. Could you explain how this tax efficiency works and how it benefits users compared to other platforms?

Crypto future trading of tokens listed on our platform does not fall under the VDA (Virtual Digital Asset) clause, which means users are exempt from the 30% VDA tax and 1% TDS that apply to other crypto transactions. However, it’s important to note that regular income tax rules still apply.

As India continues to develop its crypto regulations, how does Pi42 ensure compliance while maintaining a competitive edge? What challenges have you encountered in navigating India’s regulatory environment, and how do you foresee it evolving?

It is important to note that we follow a rigorous KYC process to ensure compliance and security when onboarding our users. We are also Financial Intelligence Unit (FIU) registered. Additionally, all withdrawals on our platform are conducted in INR. It’s important to note that we do not allow any crypto withdrawals, ensuring a secure and transparent environment for our users.

India’s regulatory landscape around cryptocurrencies is evolving gradually, but Pi42 is designed to align perfectly with the local environment. Our approach centers around transparency and accountability, helping us not only remain compliant but also gain the trust of the Indian market. Navigating regulations can be challenging, but we see this as an opportunity to set industry benchmarks. We foresee the regulatory framework becoming more structured, paving the way for a more transparent and robust crypto ecosystem.

You’ve mentioned the need for expanding blockchain education in India. Why do you think it’s important, and how can the industry and platforms like Pi42 contribute to increasing blockchain literacy across the country?

The expansion of blockchain education in India will contribute to innovating, and encouraging entrepreneurship, and will impact in economic growth. Blockchain education addresses regulatory and security concerns by democratizing access to emerging technology, enhancing financial inclusion and literacy, and preparing the workforce for future job opportunities. Pi42 conducts meetups in various cities for enthusiasts where they share ideas, insights, and practical tips for anyone navigating the intricate landscape of blockchain and understanding the technology effortlessly. Additionally, Pi42 as an exchange hosts 200+ trading pairs which are built on blockchain technology.

Pi42 has introduced trading pairs like Render, Graph, 1000PEPE, and 1000FLOKI. What is the strategy behind offering such diverse assets, and how do you select new tokens or coins for your platform?

At Pi42, we’ve introduced diverse trading pairs across multiple categories to cater to the varied interests of our users. For instance, traders passionate about AI can explore AI-related tokens, while those who prefer meme coins have over 70 meme options listed on our platform. This variety allows us to offer a well-rounded trading experience that appeals to different customer preferences and trading styles. Each trading pair on Pi42 is selected with a view to offering users meaningful opportunities in the rapidly evolving crypto landscape.

As the co-founder of India’s first Crypto-INR perpetual futures exchange, where do you see the future of crypto exchanges in India? What trends or developments should we expect in the coming years?

In the past few years, there has been a gradual positive shift in the right direction. The government has provided clarity on taxation, and crypto exchanges are now reported entities under the Prevention of Money Laundering Act (PMLA). However, the tax rate remains high, which is negatively impacting the growth of the ecosystem. This situation has led to a migration of trading volume to international exchanges, posing higher risks in terms of compliance and customer protection.

The taxation on crypto should also be at par with other businesses, the TDS should be reduced from 1% to 0.01 % and set off losses should be allowed.

Indian crypto market future seems promising. Increased adoptions and regulations where investors are becoming more informed and educated will surely increase the growth in the ecosystem.

With the implications of India’s crypto regulations and VDA taxes, how do you think this will shape the future of the Indian crypto market? What role does Pi42 play in helping users navigate this complex landscape?

India’s crypto market is currently navigating a challenging taxation regime. A 30% tax on income from cryptocurrencies and a 1% TDS on transactions above INR 10,000 have significantly impacted trading volumes and shifted this volume to international exchanges.  The taxation on crypto should also be at par with other businesses, the TDS should be reduced from 1% to 0.01 % and set off of losses should be allowed.

However, we believe that compliance will become a differentiator in the long run. Pi42 aims to support users by offering correct guidelines around the current regulations.

Pi42 has ambitions to become the largest compliant crypto futures platform globally. Could you share your vision for global expansion, and what markets or regions are you targeting next?

At Pi42, we aim to build the largest compliant crypto futures exchange in an emerging market. With a commitment to providing Indian investors with a secure and regulated platform, allowing access to a wide range of crypto futures products aligned with local regulatory frameworks. Our mission has been to offer ourselves as the exchange which is the choice for Indian investors and to catalyze innovation and growth from India with INR trading, thereby freeing them from offshore or global exchanges.

WazirX, a major Indian crypto exchange owned by Pi42 co-founder Nischal Shetty, recently faced a hacking incident. What lessons were learned from this event, and how has it influenced the security measures at Pi42 to ensure the safety of your platform and users?