Smart traders turn to crypto perps to escape TDS on virtual digital assets

economictimes.indiatimes.com:

traders in India are trying their luck on 'crypto perps', a futures product which they think could be a way to escape the stifling Tax Deducted at Source (TDS) imposed on virtual digital assets (VDAs).

Tailored for punters with the stomach to absorb losses in a market that can suddenly and dramatically turn volatile after a long lull, it's an offering that is neither aggressively marketed nor formally launched by mainline platforms.

In fact, in a departure from the loud advertisements seen at the peak of the crypto craze two years ago, these handful of service providers prefer playing down crypto futures — offering it to select clients, with one of the platforms describing the rollout as a pilot project in «beta phase».

However, trade and crypto industry circles told ET that quite a few high-net-worth individual (HNI) investors who understand the pitfalls of the trade, are betting on 'perps' — or perpetual cryptocurrency futures which, unlike the more familiar stock or commodity futures, have no expiry date. While the platforms concerned display the perp window on their apps and sites, spell out the basic product features, and the caveats, the trade volumes are not disclosed.

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The perp story is playing out at a point when a chunk of the crypto crowd in the country has either left the market or moved their positions in wallets with offshore bourses like Binance following high taxes in India and