Russia, which is one of the few countries that have restricted crypto trading, is seeing spikes in the demand for over-the-counter (OTC) investments in Bitcoin and other major cryptocurrency assets.
As the local reports say, the daily trading volume for cryptocurrencies like Bitcoin and Ethereum in Moscow alone reaches $50 million on peak days – which is still small in comparison to the major cryptocurrency exchanges – but then again large knowing that there is big regulatory uncertainty in Russia.
Right now, the government restricts cryptocurrency investing in Russia. However, since cryptocurrencies are currently considered as properties, it is technically legal for citizens and residents of the country to hold cryptocurrencies.
Aleksei Karpenko, who is a senior partner at the law firm Forward Legal, has recently spoken to a Bitcoin.com and said the following:
“There is a common rule – if specific transactions are not prohibited, then they are allowed. This is a matter of agreement between a buyer and a seller.”
Russia is seeing a stagnation in the growth of its crypto market – mostly due to the lack of regulatory frameworks and policies. However, the local OTC platforms that rely on global crypto exchanges to pool in liquidity into the cryptocurrency market charge from 1.5% to 2% as commission rates and are able to generate hundreds of thousands of dollars in daily profit.
According to analysts, the activity of cryptocurrency investors in (restricted) regions such as Russia, China and India will likely increase in the years to come, regardless of the state of their policies.
Israeli Court Rules In Favor Of BTC Mining Company Against Igud Bank
“I believe that the sweeping policy, which does not distinguish between different types of activity, the scope of activity and different types of customers — in the field of digital currencies — is unreasonable.’’At the same time, Bibi explained that the banks have a right to refuse deposits that originate from cryptocurrency trades. However, the process continued and the regulatory attitude towards crypto trading showed the impacts on the legacy banking system. As previously reported, multiple banks claimed that they have issues with servicing private investors or small business who trade cryptocurrency. Banks usually have a hostile stance on cryptocurrency but their actions are quite contradictive. For example, The United Kingdom Barclays bank also shut down multiple accounts after developing a relationship with a few crypto exchange giants including Coinbase in order to speed up deposits and withdrawals. The Union Bank, on the other hand, appears that senior executives have benefited a lot from education in the blockchain sector when the local Bit2c startup held a seminar on its projects and developments in November 2018. At the start of March, a committee from Israel’s securities regulator officially issued a paper on recommendations for governing the economy around cryptocurrency which can help the bank to improve their treatment on crypto investments more uniformly in the future. The report noted:
“The committee recommends considering adjustment of the existing regulation to create more suitable regulatory infrastructure for this trading activity in order to better cope with the risks incurred in this activity.’’
Block.one CEO: Bitcoin Will Replace Gold As The Leading Commodity
“Over the next two decades, #Bitcoin will replace #gold as the leading commodity to store value.”According to him, bitcoin is easily transferred because it is an intangible asset. It can be traded in seconds but it does have a limited total supply and it is extremely volatile. The number one cryptocurrency is a great store of value but scarcity limits the utilitarian value of the currency. As we can see, institutions start to weigh in on regulations and controlling bitcoin so they can make some more profits which have led for skyrocketing of the price after traditional investors poured their money into bitcoin. The result brought up to 25 percent of bitcoin loss, people purchasing real estate with bitcoin and institutions selling bitcoin between other major institutions for profit. Gold, on the other hand, is perceived as an experiment just like BTC. There are currently hundreds of billions of dollars worth of gold that are lost and the other half is locked in vaults. London, for example, has more than $200 billion in gold since the precious metal is still the people’s favorite store of value. Both bitcoin and gold can be traded electronically. However, if an economic collapse occurs, holding a golden voucher doesn’t mean that the assets will be yours at the end mainly in the cases of theft, terrorism, and disputes. Owning something on paper is the key issue with centralization since it doesn’t really belong to you until you have in your hands. Cryptocurrency solves this problem by being electronic. If you don’t have access to the internet, you are still the owner of the cryptocurrency. Crypto can be stored on your private key information on paper so you can access it from any other place. Gold, on the other hand, will always be more worth than bitcoin because it is a natural resource whereas Bitcoin is a computer creation. BTC aims to overtake gold as a better functioning store of value but still has a lot to go.
MakerDAO Will Focus On Security Tokens For Their New Feature Rather Than BTC
“The first one is that it can support multiple collateral types. This, of course, means ERC-20 tokens. It also means Bitcoin through WBTC. A range of cross-chain assets that are emerging now. Also, there will be other stablecoins. Centralized stablecoins that already exist on the Ethereum blockchain. But most importantly, security tokens.”The MakerDAO foundation initially owned all of its MKR tokens but as Rune explained, they sold them off to multiple huge players in the EthereMum world in order to fund teams of 100 people. He says that MKR exists only to be able to vote in the system. The system rewards people who hold CDPs and when everything goes well, the MKR total supply is reduced, tokens get burned off and the value of the remaining tokens increases. Dai is extremely unique and some consider it as the real stablecoins, unlike the pegged coins. Dai is built on an open system so people who invest in cryptocurrency can access the stability of the Oracle system. Christensen also explained how real security tokens operate better in the world of traditional assets. He said:
“Security tokens are still something that is quite new. But what that really represents to Maker is the ability to now interact with real-world assets. The ability to interact with real-world finance and provide arbitrage opportunities between the traditional finance world and the tokenized world. That means that in the future the Dai will not just be backed by volatile cryptocurrencies, but things like real estate, bonds, and stocks.”The most important way to use Dai is as a stablecoin. If anything happens to the Ethereum network, there could be some negative consequences to the market but MakerDAO couldn’t get in a worse position than the one last year.
Analysis: Could Institutional Adoption Bring The Financial Elite To Destroy Bitcoin?
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