Will Aam Aadmi Party Endorse Crypto Ahead of Delhi Assembly Elections?

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As a seasoned crypto investor and tech enthusiast living in Delhi, I have been closely following the evolving landscape of cryptocurrencies in India for several years now. My journey began with a humble investment in Bitcoin back in 2017, which has since grown into a diverse portfolio of digital assets.

The recent developments regarding AAP’s potential consideration of crypto as an election issue for the Delhi Assembly elections 2025 have piqued my interest. As someone who has witnessed the potential of this technology and its transformative power firsthand, I am excited to see a political party acknowledging its potential to attract young voters.

The promise of free wi-fi across Delhi in the 2020 Assembly elections was a game-changer for AAP, and I believe that including crypto in their manifesto could have a similar impact. If executed correctly, this move could position AAP as a forward-thinking party that understands the needs and aspirations of tech-savvy young Indians.

The recent comments made by Rajya Sabha MP Raghav Chadha on cryptocurrencies are encouraging, and I hope to see him follow through on his promises in the upcoming Rajya Sabha session. As a crypto investor, it is heartening to see a political leader taking a stand for our community, especially given the lack of support from other parties.

However, I am aware that only the central government can introduce regulatory changes related to cryptocurrencies. Nevertheless, AAP can still make a significant impact by promoting crypto education and awareness, as well as supporting local crypto entrepreneurs and investors.

I also believe that connecting with WazirX users could be a smart move for AAP, given the high concentration of crypto investors in Delhi-NCR. If they manage to address the concerns of these users and help them recover their frozen funds, it could translate into significant political capital.

All in all, I am optimistic about the potential role that AAP can play in promoting crypto adoption in India. As a crypto investor, I am eagerly awaiting the 2025 Delhi Assembly elections to see if AAP will indeed take up this issue and make history by becoming the first political party to embrace cryptocurrencies in a meaningful way.

And as for my joke, here it goes: Why did the crypto investor go broke? Because he tried to sell all his altcoins at once! But don’t worry, I learned my lesson and now I diversify my portfolio!

In the final stretch before the Delhi Assembly Elections 2025, approximately two months away, the Aam Aadmi Party (AAP) – a significant opposition group in India – could potentially position cryptocurrency as a campaign topic to appeal to the youthful electorate of Delhi.

In recent Delhi Assembly elections, AAP has consistently won by presenting a platform that resonates with the youth. Key topics like providing free Wi-Fi throughout Delhi are often featured in their election manifestos, demonstrating their commitment to addressing issues relevant to young voters.

More recently, Raghav Chadha, a parliamentarian representing the Aam Aadmi Party (AAP), one of India’s main opposition parties, addressed a demand from a crypto influencer on social media regarding the high taxes imposed by the Indian government on cryptocurrencies.

MP Chadha, representing Rajya Sabha, promised the influencer that he would certainly advocate for change in the Indian parliament regarding the current 30% tax on crypto capital gains, coupled with a 1% tax deduction at source. Furthermore, Chadha expressed his intent to bring up the matter of the numerous WazirX exchange users who are still waiting for their frozen funds following the Rs 2000 crore hack incident.

Appreciate your observation, Pushpendra. It’s my responsibility to shed light on matters that matter to our community, and I will strive to maintain this commitment. I concur with you that several aspects related to the subjects you’ve mentioned require attention. I aim to tackle as many of these issues in the forthcoming Parliamentary session.

— Raghav Chadha (@raghav_chadha) December 30, 2024

In response, Sumit Gupta, the founder of CoinDCX, expressed his views and urged Chadha to voice his concerns about the tax system in India specifically concerning Virtual Digital Assets (VDAs).

According to Gupta’s explanation, if we fail to address the tax structure promptly, innovative entrepreneurs may choose to establish their businesses abroad instead. This would result in a shift of innovation outside our country, and once again, we might miss out on the rapid adoption of disruptive technologies that are being embraced quickly by countries like the USA.

According to Chadha’s remarks, it seems that he plans to tackle these matters during the forthcoming Rajya Sabha meeting, acting as a legislator and posing queries to the relevant union ministry. This action by Chadha could serve as a precedent, enabling AAP to address this issue further if it resonates with voters in Delhi.

Crypto and India: A Hush Hush Affair

As a seasoned analyst with years of experience tracking global financial markets, I have observed a unique dynamic unfolding in India’s cryptocurrency sector. For two consecutive years, India has led the world in crypto adoption index, yet it remains shrouded in secrecy within government circles and among opposition parties.

Personally, I find this intriguing given my professional background. The Indian government has not officially recognized cryptocurrencies, choosing instead to remain neutral on their legitimacy. However, they have imposed a hefty 30% capital gains tax and 1% TDS on these digital assets, indicating some level of acknowledgement and interest in the sector.

From my perspective, this approach seems contradictory. On one hand, the government is collecting significant revenue from cryptocurrency transactions, while on the other, they are not providing clear guidelines or regulations for the industry. This lack of clarity creates uncertainty and potentially stifles growth in a sector that has immense potential to drive innovation and economic development.

I believe that a more proactive approach towards regulating and recognizing cryptocurrencies could yield significant benefits for India, both economically and technologically. As an analyst, I am eager to see how the situation unfolds, and I hope that the government will take steps towards fostering a supportive environment for this rapidly evolving industry.

Furthermore, there have been critical remarks about cryptocurrency from powerful figures, such as the former Reserve Bank of India governor, which may have widened the gap between this field and mainstream acceptance.

In 2024, approximately one million crypto investors in India suffered financial losses when WazirX, an Indian cryptocurrency exchange, was subjected to a cyber attack worth around 20 billion Indian Rupees (Rs 2000 crore). Following the hack, the exchange administration has kept about Rs 2500 crore of investor funds frozen for the past five months and is seeking assistance from a Singaporean court. Now, these Indian investors find themselves in a precarious position, relying on both the Singapore judicial system and the exchange management to recover their funds.

As a long-time follower and user of cryptocurrencies, I have witnessed firsthand the potential of this emerging technology to revolutionize finance and empower individuals. However, my faith in the Indian government’s support for the crypto sector has been shaken following the recent WazirX hack and mismanagement scandal. The lack of action from any Indian politician to address the concerns of users like myself is disheartening and speaks volumes about their apathy towards this industry.

The silence of our political leaders in the face of such a significant breach of trust is alarming, as it sends a message that the crypto sector is not a priority for them. The recent comments made by Chadha on X set a dangerous precedent, as they imply that the government will continue to turn a blind eye to the misdeeds of crypto exchanges if no one speaks up.

I believe that the Indian government must take immediate action to protect its citizens who are invested in this sector and ensure that exchanges are held accountable for their actions. A clear and consistent regulatory framework is necessary to prevent future hacks and mismanagement, as well as to foster a healthy and thriving crypto ecosystem in India.

It’s time for our politicians to step up and show their support for the millions of Indians who have embraced cryptocurrencies as a means of financial freedom. The future of this innovative technology depends on it.

How can AAP promote Crypto through Delhi Assembly elections?

Although the central government in India has exclusive authority to implement regulatory changes concerning cryptocurrency, AAP is still capable of incorporating crypto into their manifesto for the Delhi Assembly elections. As the ruling party of Delhi, AAP oversees departments such as Education, Training and Technical Education, Revenue, Finance and Planning, and they can certainly advocate for educational programs about cryptocurrency within an awareness campaign. Furthermore, the party could encourage local crypto investors from Delhi-NCR with grants, subsidies, and even launch a crypto outreach program at their own level to promote further engagement.

Additionally, it’s worth noting that the Aam Aadmi Party (AAP) has the opportunity to engage with WazirX users since a survey by CoinSwitch revealed that Delhi holds the highest percentage of crypto investors in India at 20.1%. Furthermore, the AAP is positioning itself as a national party capable of forming a government at the center. Thus, courting crypto voters for the 2029 General Assembly elections could potentially benefit the party.

Conclusion

Following the dismissive attitudes towards cryptocurrency by both the Bharatiya Janata Party and the Indian National Congress among the Indian community, the Aam Aadmi Party could capitalize on being an early adopter of crypto adoption in India. By doing so, they may potentially gain support from the youth in Delhi and across India with their votes.

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2025-01-02 16:56