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Will India get a pro-crypto finance minister after the elections?
As India witnesses a hotly contested race for its general elections, an eerie calm reigns in the crypto community which has been largely disappointed by the government’s stance on regulation. India has one of the highest taxes, at 30% on any gains from the transfer of cryptocurrencies.
As the vote counting process continues on Tuesday for India’s 2024 general elections, there is a neck-and-neck contest between the government led by outgoing Prime Minister Narendra Modi and an alliance of opposition parties known as the name of INDIA.
It is likely that India’s next ruling government will be an alliance of several coalition parties, whether or not Prime Minister Modi remains the incumbent prime minister. In this scenario, India’s next finance minister will be a different face from the current minister Nirmala Sitharaman.
Indian Finance Minister Sitharaman has been criticized by Indian cryptocurrency investors over her views on cryptocurrencies, particularly their high taxation.
Sitharaman has made her views on crypto very clear, as during a recent India Today 2024 Conclave, she said that crypto assets cannot be recognized as legal tender. She reiterated that the government has always been explicit about this, leaving disappointed investors who expected more lenient regulations.
Previously, Sitharaman introduced a 30% tax on cryptocurrency income. She clarified that this policy was aimed at monitoring their source rather than legitimizing them, which had a negative impact on investor confidence. Many were hoping for a more favorable tax regime given the pro-business stance of the ruling Bharatiya Janata Party (BJP).
Sitharaman pointed out that cryptocurrencies are still unregulated in India. Although they can be used as assets for trade and investment, they are not accepted as official currency or an investment product. This regulatory ambiguity has caused uncertainty for both investors and crypto-based businesses. The finance minister expressed concerns over international payments and the potential misuse of unregulated cryptocurrencies. She highlighted the complications that arise when some countries regulate cryptocurrencies while others do not, which could lead to money laundering, back-and-forths and even the financing of illegal activities like terrorism .
The general lack of clear guidelines and ambient regulatory uncertainty have frustrated crypto investors. They are calling for more transparent policies and a favorable regulatory environment for the adoption of cryptocurrencies.
These are the reasons why crypto enthusiasts want to see a new finance minister in the next term of the NDA or INDIA-led government. No crypto enthusiast wants to see crypto as legal tender in the country soon. All they need is a clear and supportive policy in the country, so that they can enjoy the benefits of crypto like every other country.
Read also: Indian markets plunge, crypto goes wild as 2024 election countdown unfolds