In the past year there has been a dramatic increase in the trade of Crypto derivatives -Futures and Options (F&O), whereby Spot transactions with a factor of three or more on large Indian platforms are surpassed | Photocredit: Primimages
Crypto derivatives steal the spotlight in India. In the past year, trade in futures and options has risen to more than three times the quantities of spot markets at local fairs. As a result, worldwide locations see India as a must-win market, where platforms first go compliance by locating KYC/AML and coordinating products with Indian rules to conquer the enormous growth potential of the country.
According to experts, there has been a dramatic increase in the trade of crypto derivatives -futures and options (F&O) in the past year, so that spot transactions with a factor of three or more large Indian platforms are surpassed. The factors that manage this momentum are: the possibility for traders to strengthen returns through leverage, a sharp start in global crypto prices and the developing tax and regulatory environment of India.
While Spot is confronted with a fixed capital gain tax of 30 percent on the profit plus 1 percent tax deducted from the source (TDS), Futures TDS avoid and qualify for plates -based taxes with loss sacrificial sets. Derivatives trading does not concern an outright transfer of the underlying asset, so that the profit can be explained as ‘income from other sources’, often at a much lower effective tax rate.
Abhay Agarwal, the founder and CEO of Getbit, a Bitcoin-Native Financial Service Platform, added that in Indian crypto-derivatives one can be exposed from 10x to 50x or even more leverage-on their first margin compared to a much lower leverage in Equy-Futures.
“In contrast to the buy-and-hold bias of Spot, derivatives make capital-light exposure, hedging and advanced strategies possible. Traders use perpetuals for directive games, options for structures with a definitive risk and basic/financing trade for arbitrage. Leverage minimizes more capital and avoids. Himanshu-Maradiya, the Foundation Himanshu-Maradiya, the Foundation Himanshu-Maradiya, the Foundation Himanshu-Maradiya minimizes, the foundation of Himanshu-Maradiya, the Foundation, the Himansu, the Foundation, the Foundation, the Foundation, the Foundation, the Foundation, the Himansu, the Foundation, the Foundation, the Himansu, the Foundation, the Foundation, the Foundation, the Foundation, the Foundationhu, the Foundationhu, the Foundationhu, the Foundationhu, the Foundationhu, the Foundationhu, the Foundationhu, the Foundationhuhuh Foundation -Maradiya, the Foundation minimizes Cifdaq, a cryptocurrency exchange and blockchain system.
Worldwide exchanges are now tailored to the rising hunger for leverage and derivatives, as evidenced by the recent scale of offshore platforms such as Binance and Kucin, who have secured the registration of Financial Intelligence Unit (FIU), even while Coinbase prepares for a re-entry.
Adjusting Indian users means adapting to stricter local compliance, including anti-money laundering rules, FIU-India registration, the locating KYC/AML, tailoring products to meet legal expectations and sometimes collaborate with domestic partners.
‘Not an open book’
Yet the Indian market is far from an open book. “Inr -pay and withdrawal channels are strictly controlled and the final hindrances remain considerable. Some global platforms limit access to Indian citizens or rework KYC requirements in response to the risk of regulations. Others try to innovate around regulatory lines or investing the conscientious. Policy shifts, “said the Getbit CEO.
However, this period of rapid growth in crypto derivatives can be untenable due to the risk of regulating intervention. It can be compensated by a harmonized tax structure for derivatives, restrictions on leverage or more robust reports.
Agarwal also noted that the regulating environment is complex and quickly evolves. Indian authorities – the RBI, Sebi, Ministry of Finance and CBDT – have expressed concern about the proliferation of derivatives in Crypto. The volatility of the underlying assets means that mass use of high leverage could translate into considerable losses to the retail trade if the markets change.
tax evasion
There is also a fear of tax evasion and cross-border capital movements, because most derived order books live on offshore platforms.
“Regulators emphasize the dangers of excessive leverage, in which 90 percent of retail traders lose money, in addition to systemic and AML risks. The position of India has shifted from prohibition on risk-based integration: Fiu enforcement of aml, rbi bands warns and sebi of the Estability, of the Estability of the Estability, of the Estability of the Estability of the Estability, of the Estability of the Estability, of the Estability, of the Estability, of the Estability, of the Estability of the Estability, of the Estability of the Estability, of the Estability of the Estability, Estability, Property department of the Equity derivatives, “of the ownership department of the ownership department,”.
In addition, Crypto is an asset class in a “gray zone”. Although it is legal to possess and act in India, it is not nearly as a legal means of payment.
Published on 2 September 2025
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