It is anticipated that the at hand Indian election could highly affect the government’s way of regulating the Cryptocurrency industry. A local lawyer has explained how the forthcoming election would be affecting the regulations. As per the Indian Election Commission’s code of conduct rules, no new law can be passed during the election.
It is known that the general election would be held in seven phases between the 11th of April 2019 and 19th of May 2019. The results will be announced on 23rd of May, 2019. Varun Sethi, the founder of the Blockchain Lawyer stated that the code of conduct or the “aachar sanhita” applies during the time of election. As a result, no new law can be passed and during this time he anticipates that the government will not announce any regulation regarding the Cryptocurrency and the other related officially. According to Sumit Gupta, the CEO of local Cryptocurrency exchange Coindcx, the government is likely to postpone the Cryptocurrency regulations until after the general elections.
The Government of India has been drafting a regulatory framework for the Cryptocurrency for quite some time. According to Subhash Chandra Garg, Secretary of Department of Economic Affairs, Ministry of France, a draft Cryptocurrency regulation would be ready in July last year. However, the government is yet to announce any forms of the regulation for the Cryptocurrency industry. Sethi further revealed that after the general election, the government as a populist measure may consider the adoption of new technology and the Cryptocurrency exchanges could benefit from it. Nonetheless, this could happen only if the Supreme Court passes the order in the positive way. Sumit Gupta also stated that the Cryptocurrency regulation is a critical decision to be taken in a hurry and it is best to take time to come up with a good regulatory framework rather that messing up with wrong steps.