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India Voting Results Out, Modi Government Continues: What does it mean for Bitcoin?

According to the election results in India, the Modi government is set to come back to power with an even massive margin compared to the 2014 elections.
According to the election results in India, the Modi government is set to come back to power with an even massive margin compared to the 2014 elections.

The exit poll outcomes have projected a win for the BJP- led National Democratic Alliance in the Sabha elections 2019. According to the results, the Narendra Modi government is set to come back to power with an even massive margin compared to the 2014 elections. According to the IndiaToday-Axis My India Exit Poll, the (BJP) Bharatiya Janata Party-led NDA will be victorious by almost 339-365 seats. On the other hand, the Congress party will be lowered to 77-108 seats.

 

Modi Government on Bitcoin

Bitcoin is a cryptocurrency that has become a craze globally. It is a common hit amongst the Indians handling over $3.5 billion worth of transactions. All these have transpired in a period of more than 17 months, as per the income tax department. Clearly, it is an advantageous opportunity for the Indian country economically. Therefore, the Modi government might be doing a big mistake for India with his push to have bitcoin eradicated from India. The profiles of various common investors can back up this claim. They include tech-savvy young investors, jewelers, and even real estate players. It is a claim that was presented to Reuters by tax officials.

 

However, Modi’s government might not let Bitcoin improve the country’s money industry. Various governments around the world are not certain what move to take on the Bitcoin matter. It is due to the fact that it is beneficial and can be viewed as an opportunity for India as a whole. Nonetheless, the Modi government has quickly responded negatively to put a halt on Bitcoin and other similar cryptocurrencies. The notices were transmitted after a survey conducted studied the penetration and the patterns of the virtual currency trade. Despite ongoing investigations on the legality of the cryptocurrencies, his government made it clear that it will not wait. This might be an ill-advised move that might only bring loss and decreased value in India.

 

In the previous month, the department of income tax (IT) organized to send some notices to 4-5 lakh very highly rich individuals across India. There are among the persons who are profiting from Bitcoin. It was reported by the PTI. The action came in after the Income Tax department carried out survey operations at primary bitcoin exchanges in India. Their research was purely based on suspicion that members of bitcoin were allegedly not paying tax. They wanted to gather proof for formulating the real identities of the traders and investors. Also, they wanted to establish their transactions and related bank accounts. Why put such claims on innocent persons just making a profit and creating an opportunity for India. According to cryptocurrency enthusiasts in India, the Modi government should follow other government nations waiting on the outcome of the investigations being carried out. They see the benefit of Bitcoin to its youth and India as a whole.

 

Why it won’t be simple to eradicate cryptocurrencies in India

It is still yet undisclosed what Modi’s government motive against Bitcoin is, however, what is certain is that it will be extremely difficult. This cause of action could lead to more money laundering, tax evasion, and even illegitimate transactions. Who would want such to occur in their country?

 

Cryptocurrencies are not managed by national jurisdictions; however, they are fueled by blockchain technology. It is a decentralized, public and distributed online ledger that handles the recording of transactions. A worldwide network of computers handles the database whose main purpose is to record all deals. What ahead with the Modi government in terms of bitcoin regulation in India is yet to see.

What are your thoughts on the future of bitcoin in India? Tell us in the comments section below.

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Written by Nadja Eriksson

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