May 25, 2022

Analyst at ICB Fund "Market participants are interested in the regulation of cryptocurrencies no less than the state"

Analyst at ICB Fund "Market participants are interested in the regulation of cryptocurrencies no less than the state"

Like any other business area, mining andinvestments in cryptocurrency should be regulated both to ensure the peace of mind of market participants and to receive taxes from the state. Everything is actually very simple. The position of the Central Bank of the Russian Federation has been known for a long time and the recent report did not provide any new information for consideration. At the same time, other departments are more constructive and do not want to ban the crypt, but to have control and income.

Even the representatives of the Central Bank themselves admit that it will not be possible to completely ban Russians from buying coins, so we are talking about complicating the process: to deprive people of the opportunity to use domestic infrastructure.

First of all, it is necessary to take adequatea bill that would define all the terms from the new sphere. The need for this became even more acute after miners from China arrived in the country. And the crypto business itself is not limited to just mining coins, so a large number of investors and intermediaries also expect greater transparency.

The Russians play an important role in the new sphere andare massively represented among the creators and participants of well-known projects, for example, 1inch, a large liquidity aggregator. As a rule, they have to conduct business in other countries, since there is more understandable regulation, which also simplifies access to capital. It would be good if the representatives of the high-tech industry were comfortable in Russia as well.

View from the outside

No cryptocurrency risk for stabilitythey don’t carry the financial system, but citizens can easily become a victim of scammers due to the lack of regulation. Coins are mainly used for investment, while decentralized projects are used by a rather small number of people.

For example, the most popular protocols areplay-to-earn games: Alien Worlds (243 thousand active users per day), Axie Infinity (104 thousand), etc. However, this is a very unstable indicator, as users often run into the project, accumulate coins, drain them on the market, bringing down the cost, and look for a new game.

At the same time, DeFi activity is much lower.On average, about 20 thousand people a day use the services of decentralized exchanges: SushiSwap (17.85 thousand), Raydium (17.93 thousand), etc. In other words, there is no need to talk about some special popularity.

text: Aaron Chomsky, Head of Investment Department, ICB Fund