In an intriguing twist to the financial disclosures that prelude the fervor of India’s 2024 general elections, Shashi Tharoor, a distinguished figure in Indian politics and the Congress candidate for Thiruvananthapuram, has revealed an investment in a Bitcoin ETF among his diverse financial portfolio.
India is going into general elections to elect its prime minister, with the electoral process spanning from April 19 to June 1 and the nation anticipating the results on June 4.
Shashi Tharoor, with a political career that spans roles such as the former Minister of State for HRD and External Affairs, and currently serving his third term as a member of parliament, disclosed holdings in a Bitcoin ETF valued at $6,138 (Rs 5,11,314). This move is not just a personal investment strategy but also a marker of the slowly changing perspectives towards cryptocurrency within the upper echelons of Indian governance and policy circles.
Tharoor’s revelation sparked varied reactions, with Sumit Gupta, CEO of Indian cryptocurrency exchange CoinDCX, taking to social media platform X to share his views. Gupta applauds Tharoor, stating, “Glad to know, @ShashiTharoor knows #Bitcoin!”
He further highlighted the potential positive impact of Tharoor’s disclosed investment on fostering confidence among Indians to explore cryptocurrencies.
“So, it is encouraging to see Shashi Tharoor’s portfolio includes exposure to Bitcoin. This can give more Indians the confidence to explore crypto!”
Aside from his Bitcoin ETF holding, Tharoor’s affidavit shed light on his diverse investment portfolio, including overseas investments in equities, corporate bonds, certificate of deposits, options, and US Treasury Securities. The total movable assets declared by Tharoor amount to $5.9 million (Rs 49.3 crore), with additional immovable assets valued at Rs 6.75 crore.
Why does it matter? Tharoor’s investment is particularly noteworthy against the backdrop of India’s cautious, if not skeptical, stance towards cryptocurrencies. Despite the absence of a central regulatory body for cryptocurrencies in India, the finance ministry has begun recognizing the financial activities surrounding digital assets by introducing a tax regime specific to cryptocurrency transactions in 2022. This includes a hefty 30% tax on crypto profits and a 1% TDS on all digital transactions. Additionally, the RBI Governor’s call in January 2023 for a complete ban on Bitcoin, labeling it as “gambling,” highlights the contentious position cryptocurrencies hold within the country’s financial and regulatory ecosystem.
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However, 2023 marked a year where India, under its G20 presidency, played a pivotal role in navigating global consensus towards a regulatory framework for cryptocurrencies. The agreement among G20 finance ministers on a roadmap adhering to the Financial Action Task Force (FATF) standards and the adoption of a synthesis paper by the IMF-FSB on crypto regulations are indicative of India’s evolving stance and its inclination towards crafting a balanced regulatory environment that can foster innovation while mitigating risks.
Shashi Tharoor’s foray into cryptocurrency investment, therefore, is not an isolated incident but a reflection of a broader, albeit gradual, acceptance of digital currencies within India’s financial discourse. With Tharoor’s diverse investment portfolio, featuring equities, bonds, and now a Bitcoin ETF, the narrative extends beyond personal investment choices to potentially influencing public opinion and policy considerations regarding cryptocurrencies in India.
As India deliberates on its approach to cryptocurrency regulation, with the Parliamentary Standing Committee hinting at a delay in accepting a specialized crypto regulation bill until mid-2025, the intersection of politics, personal investments, and policy-making in the context of cryptocurrencies will continue to be a space of keen interest and scrutiny.
Tharoor’s investment in a Bitcoin ETF, amidst this landscape, could well be a harbinger of the gradual mainstreaming of cryptocurrencies in the Indian financial market, signaling a future where digital assets find a more defined and accepted place within the country’s economic frameworks.
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