Medvedev Warns People Not to Bury Crypto Assets over Market Crash
It is no secret that Bitcoin’s recent price behavior has more than just a few investors worried because of its sharp decline that started in November 2018 and its inability to fully recover ever since, despite a few ups and downs. No one knows for sure what the future may hold for the world’s most influential digital asset.
However, at the very least, it deserves the benefit of the doubt. According to Russian Prime Minister Dmitry Medvedev, the cryptocurrency behavior should be closely monitored in the following weeks to see whether it shows signs of life or not.
Quoted by a local media news agency after speaking at the Gaidar international scientific forum this week, Medvedev talked about the recent market downfall that saw Bitcoin go from the $6,500 range to below $3,300 in a matter of weeks. Right now, at the time of writing this piece, it had survived another bearish run.
Medvedev stated on Tuesday that it was crucial for the industry and its primary actors to closely follow the Bitcoin price situation, and other coins as well. He explained that due to their volatility, they concern investors and traders, but the technology itself has benefits that should not be dismissed.
“This (Bitcoin and altcoins’ volatility in 2018), of course, is not a reason to bury them. There are both light and dark sides, as in any social phenomenon, in any economic institute. And we should just watch closely what happens to them.”
In his intervention at the forum, the Russian politician also talked about social inequalities, trade protectionism, and the world’s transition to the digital platform, citing the cryptocurrencies in the latter subject.
Russia won’t be investing in Bitcoin…yet
Rumors circulating in the past few days stated that Russia was prepared to make a major investment in Bitcoin, and several news outlets reported that the country was going to acquire $10 billion worth of BTC.
However, the story was blown over by the media, being originated from a tweet published by financial expert and member of the Russian Presidential Academy of National Economy and Public Administration, Vladislav Ginko.
Ginko had written that he thought the country might use BTC with the intention of hedging against sanctions. Whilst it may be a possibility, the nation’s government has not made an official statement on the matter.
The Quest for Crypto Regulation Has Started
What is indeed going to happen is that Russia is going to prepare a cryptocurrencies’ regulatory framework within the next couple of months, according to a local news site (TASS.) The country, through the State Duma, will be drafting a bill sometime in January or February with the goal of regulating ICOs (Initial Coin Offerings) and other crowdfunding initiatives.
“The long-awaited law on digital financial assets is in the GPU for approval. It is in conjunction with two others: the law on the regulation of investment platforms or crowdfunding and changes to the Civil Code. We agreed that the law on digital financial assets should be adopted along with these two legislative acts […] Judging by the information that I have, this is January-February. Most likely, February, of course. Consideration of all three bills should pass,” were the words of Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market.
By Andres Chavez