India Election Spring Surprise: Equity Market Raising Crypto Uncertainty
India election results have cast a shadow on the future of crypto legislation in the country. Notably, India’s voters sprung an election surprise on Prime Minister Narendra Modi’s party, awarding it a smaller share than forecast in preliminary however, this unexpected outcome has sent shockwaves through the stock market and is likely to delay any significant progress on crypto legislation.
Initially, exit polls had projected a landslide victory for the BJP and its allies, leading to record highs in the Indian stock market.
However, as the India election results unfolded, the market experienced a dramatic crash, losing over $350 billion in value within hours. This volatility reflects investor uncertainty and anxiety about the potential impact of a less decisive political landscape on policy decisions.
India Election Cast Uncertain Shadows
According to the source, India’s current crypto regulations remain in place, including a 1% tax deducted at source on every crypto transaction, which is the primary concern for the industry.
Before the election, there were hopes that Modi’s government would prioritize comprehensive crypto legislation, particularly during its presidency of the Group of 20 nations last year. However, the need to solidify a governing coalition and address the policy concerns of coalition partners will likely push any such legislation further down the road.
Furthermore, the election results could potentially lead to a change in the Finance Ministry, which currently holds significant influence over crypto policy. Nirmala Sitharaman, the current Finance Minister, is a colleague of Modi’s, but her position could be influenced by political changes.
It’s worth noting that neither the BJP nor the Indian National Congress addressed cryptocurrency, blockchain, or Web3 in their election manifestos, highlighting the lack of a clear political consensus on these emerging technologies.
UK Election Unlikely to Disrupt Crypto Regulation Progress
Industry experts assert that the upcoming UK election will have little or no impact on crypto regulations.
In an interview with Coindesk, some industry experts claimed that the upcoming election in the United Kingdom will not change the trajectory of crypto regulation. The assertion is based on the precedent that the incumbent five-year term of the governing Conservative Party, which has been in power since May 2010, allowed cryptocurrencies to gain impetus in the country.
