India's voters sprung an election surprise on Prime Minister Narendra Modi's party, awarding it a smaller share than forecast in preliminary results, sending stock markets crashing and likely pushing crypto legislation further into the future.
While Modi's Bharatiya Janata Party and its allies are poised to return to power, they didn’t hit the supermajority mark of 370 plus seats in India’s 543-seat lower house of parliament, which they predicted. In fact, the BJP alone did not hit the halfway mark of 272, which it had comfortably crossed in the 2019 election. The result hands kingmaking power to his allies, and the opposition led by the Indian National Congress could attempt to lure them away.in value in a matter of hours.
"The election results were a true black swan event that no one saw coming," said Rajagopal Menon, vice president of Indian cryptocurrency exchange WazirX."In the short term, markets will remain jittery as they despise instability. Once the new government takes office, things should return to normal."and certainly not a political talking point during campaigning in the world's largest democracy.
"On the crypto regulation front, nothing changes significantly," Menon said."India is a signatory to the G20 ministerial declaration, which outlines a clear roadmap for regulations by 2025. Things will start heating up towards the end of the year for crypto regulations.