Now a SIP for crypto-assets

Chennai: The move to tax virtual digital assets at 30% in the union budget has encouraged crypto industry players to offer financial products on the asset.
Crypto exchange CoinSwitch on Monday launched a Recurring Purchase Plan (RBP) – a systematic investment plan to buy crypto assets in India. Users can sign up through a waiting list for early access to explore this new feature, the company said. With this, the startup wants users to beat market volatility and avoid making impulse buy or sell decisions.
Ashish Singhal, Founder and CEO of CoinSwitch, told TOI that the recurring purchase plan is for people who take a more systematic, long-term approach to buying crypto assets and is not really designed as a product for traders. “We are still reading the fine print of the budget. Our initial understanding is that the 1% TDS will generally impact frequent traders who operate with smaller spreads,” he said.
“The plan will allow long-term investors to invest systematically and avoid the impulse to time the market and make emotional trading decisions, and will also allow users with a lower risk profile to explore this new asset class,” he added.
Tax experts TOI spoke to said that while the budget is silent on products such as crypto RBPs, taxation will likely be along the same lines as SIPs, which are taxed on withdrawal.
The feature, currently available on Android and coming soon to iOS, will help users make systematic investments in over 80 coins, including Bitcoin, Ethereum, and Dogecoin. The company said it only allows resident Indian bank accounts on the platform and conducts name checks (for politically exposed persons status, sanctioned list and negative news, etc.) for users making payments above a threshold.
According to CoinSwitch, in RBPs, prices are best averaged over multiple time frames, and therefore long-term exposure should give users an advantage over short-term buying and selling.
The digital exchange caters to around 15 million registered users, mostly retail investors. It raised $260m in Series C funding from Coinbase Ventures and Andreessen Horowitz (a16z) in September 2021 and is India’s top-rated crypto unicorn with a valuation of $1.9bn.