Just a few days after the Union Budget 2022 proposed a 30% tax on income from digital assets, crypto investing platform CoinSwitch has launched a recurring buy plan (RBP), a systematic way to buy crypto assets in India. The plan aims to enable investors to beat market volatility and avoid making impulsive buying or selling decisions.
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RBP will allow users to buy small amounts of crypto regularly. The users can now sign up through a waitlist to get early access to explore this new feature, the exchange said in a statement. The feature is similar to a systematic investment plan (SIP), where an investor puts in money at different times that helps in diversification.
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CoinSwitch claims to have over 15 million registered users, primarily retail crypto investors.
The early access application process to the RBP feature opened on February 7 and users will get access on February 15, 2022. It will help users to make systematic investments across more than 80 coins, including bitcoin, Ethereum and dogecoin. The feature is currently available to Android users and will soon be available on iOS.
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Founder and CEO of CoinSwitch, Ashish Singhal said “At CoinSwitch, we want to help users across their financial journey. Crypto is an emerging but attractive asset class and has a higher degree of volatility in comparison to traditional assets. Recurring buy plan allows users experience the power of compounding by systematically buying cryptos and making regular, distributed purchases.”
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The platform allows only resident Indian bank accounts on the platform and conducts a name screening (for Politically Exposed Person status, Sanctioned list, and negative news) if any user makes a payment beyond a certain limit.
In December, CoinSwitch also introduced Riskometer, a new feature inside the app which warns users before they invest in riskier cryptos.
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In September 2021, CoinSwitch raised $260 million in Series C funding from Coinbase Ventures and Andreessen Horowitz (a16z). It is India’s most valued crypto unicorn with a valuation of $1.9 billion.
The crypto exchanges welcomed the government’s proposal of a 30% tax on crypto and other virtual digital assets. However, crypto investors and community said the proposed tax is very high and would stop small investors from taking advantage of the emerging crypto market.