Recently a few platforms have started to offer Crypto Derivatives (F&O) in INR, very similar to currency derivatives, as visible in the following chart.
From a trader’s perspective there is no USDT or NFT or Crypto Coin involved here, so it is very simple for existing derivative traders to explore these new instruments.
At present it’s a very niche segment. Since Dhan already has the required infrastructure, technology and experience in this area now, maybe Dhan can also try to explore it and offer a single account to trade F&O in Equity/Commodity/Currency/Crypto along with investments in Equity/MF.
Yes, I think it will be very good if Dhan can offer it directly in their platform itself so that we don’t have to switch to any other platform for crypto derivatives trading.
SEBI permission and guidelines needed for crypto launch through present stock brokers.
But crypto trading in India is not under control of SEBI its now under control of RBI and Finance department, so its not possible for stock brokers to offer crypto trading.
Risk is simple search of crypto in trading view itself you will find so much difference in prices of crypto of same type in different exchange, such difference is so good for arbitrage and International trade but not for regular trading.
For an instrument need to be stable in price point of view to launch into stock trading.
Crypto exchanges are also planning their best to form a unified stable exchange for crypto trading but recent hacks attacks on crypto exchange like wazir,… etc made them rethink , lot of infrastructure changes need to be made to upgrade to bring back regular crypto trading at their level.
It will mostly take around another minimum 2 to 3 years atleast in private crypto exchange to bring uniformity at Indian market level, then we may see govt involvement to bring crypto to public until the stability established we cant say or even see crypto trading as free as stock trading.
Is your assumption that a stock broker cannot run crypto exchange supported by any Law?
The VazirX incident you’ve mentioned was possible due to allowed transactions in crypto tokens, which is not what we’re talking about. You may read further to gain clarity in how crypto exchanges are hacked.
Looks like you’re not up to date with recent developments and legal support for crypto derivative trading in INR under FIU-IND regulations.
Stock brokers are compiled by SEBI rules so they cannot unless and until SEBI say ok for crypto trading.
As you said hacking happen related to crypto wallets, most of the crypto should have their crypto with them to settle derivatives that’s why very few are well known crypto exchanges are in function and famous crypto exchanges bankrupted in USA with same reason.
In USA this fraud happen divering investors money promissing crypto and ETF investments shown crypto in their wallets but most of them are generated false crypto.
Crypto have most advantage of fraud that’s why every one are now talking about its derivatives its a new version of fraud, when exchange fail to have crypto in their wallets to settle at the end derivatives will collapse just like tulips that happen with famous crypto derivative exchange in UAE. So bro its more risk that invest or for trade.
Recently USA encouraging stable coins only for one reason to dump their debt to crypto which is already in action.
Crypto is mainly introduced as a currency version of open (like Linux in software terms) than a controlled currency by central bank( like Microsoft in software terms).
When western central banks running back crypto it already lost its freedom of openness and now mostly controlled by stable coin so don’t expect miracles in crypto market either coins or derivatives as both are linked.
Crypto regulation can hit anytime. When it hits the current landscape is going to change significantly. Currently crypto exchanges are just FIO registered and abide by the rules there.
Just think the already well regulated stock market is being hit by regulatory change after change. Crypto free hand therefore may be chained any time.
Yes, and MFs are SEBI regulated too. In fact, SEBI has also come up with some directions as to how a brokerage can offer MFs and what are it’s boundaries.
MFs are often exchange and SEBI approved for pledging also. Quite regulated and normal.
“Such developments underscore the scale of transformation which is underway. They also remind us that no nation can insulate itself from the systemic changes. Whether we welcome these shifts or not, we must prepare to engage with them.”
