India Election 2024: 5 Reasons Why Crypto Policy Might Stay Unchanged

As India’s Election 2024 unfolds, crypto enthusiasts are closely observing its potential impact on the nation’s cryptocurrency policies. Despite the political fervour surrounding the elections, indications suggest that India’s stance on cryptocurrencies may remain stable in the upcoming parliamentary session.

Election Manifestos and Public Discourse

Major political parties like the Bharatiya Janta Party (BJP) and Indian National Congress (INC) have notably omitted direct references to cryptocurrencies in their manifestos. Instead, the focus remains on broader digitalization initiatives, reflecting the relative insignificance of crypto-related issues in the eyes of voters. With public discourse centred around socio-political concerns, crypto regulation appears to be less of a priority on the electoral agenda.

Steadfast Regulatory Environment

Experts anticipate the continuation of stringent cryptocurrency regulations post-India Election 2024. The government’s persistent tax and regulatory measures during Prime Minister Narendra Modi’s second term have significantly constrained the crypto industry’s growth. Despite sporadic policy changes such as the recent crackdown on offshore exchanges, the overall regulatory framework remains largely unchanged.

Absence of Opposition Narrative

The opposition parties, including the INC, have not presented a clear stance on crypto regulation, primarily focusing on challenging the BJP’s electoral dominance. Their limited engagement with crypto-related issues suggests a reinforcement of the status quo. The absence of a robust opposition narrative indicates that substantial alterations to the existing regulatory framework are improbable in the near future.

Continued Government Ambiguity

Finance Minister Nirmala Sitharaman‘s recent statements, albeit somewhat ambiguous, hint at the maintenance of the current cryptocurrency regulation. While the government acknowledges crypto assets, it exhibits a reluctance to enact regulatory amendments, demonstrating a cautious approach amidst evolving circumstances.

FM Nirmala Sitharaman spells India's stance on crypto: 'Cannot be currencies' https://t.co/KdJr833iS3

— Gadgets 360 (@Gadgets360) March 15, 2024

Also Read: Crypto Isn’t Currency: Indian Finance Minister Calls for G20 Oversight

Global Policy Influence and Digital Ambitions

India’s active participation in shaping global cryptocurrency policies, exemplified by its leadership in the Group of 20 in 2023, underscores its pursuit of a coherent regulatory framework. Moreover, the forthcoming introduction of the digital rupee signals the convergence of domestic and international digital objectives, potentially influencing India’s cryptocurrency policy direction.

Conclusion

Despite the significance of India’s Election 2024, its impact on crypto policy appears limited. With no clear electoral mandates, coupled with a consistent regulatory landscape and global aspirations, India’s cryptocurrency regulations are poised to remain unchanged post-election. As the nation embarks on its digital journey, the trajectory of crypto regulation aligns with broader economic imperatives and international influences.