The Next Crypto Spring Might Be Like No Other Because of This Factor

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Source: ChengWen/Adobe

A “very different picture” awaits bitcoin (BTC) and crypto holders next spring, a senior Ukrainian politician has warned – as crypto exchanges begin to lose their grip on the sector.

The warning came from Daniil Getmantsev, the chairman of the Verkhovna Rada committee on financial, tax and customs policy. The MP told Glavcom:

“As this crypto winter comes to an end, a completely different landscape for the cryptocurrency market is likely to emerge next spring.”

All time bitcoin (BTC) price. The last major winter crypto event was in early 2018, with a spring beginning in late 2019. (Source: CoinMarketCap)

Getmantsev explained that the crypto world operates “according to the laws of the financial world”.

But, he noted:

“The stock exchanges are currently going through a crisis. They provide cryptocurrencies with liquidity, stability, and relatively objective token price information. If there are no exchanges in the crypto market, there will be no objective information about the price of these currencies.

Getmantsev likened the fall in crypto exchanges to “the stock market crash.”

Ethereum (ETH) price all time. (Source: CoinMarketCap)More reasons why Crypto Spring might be difficult

Getmantsev also issued warnings to those who hoped that the “legalization of cryptocurrencies” would bring the government a significant increase in revenue – mainly because “some cryptocurrencies lose their value significantly”.

He spoke about efforts to “legalize” crypto in Ukraine, which he said would not boost the sector either.

He explained:

“I would certainly not overestimate the tax effect of legalizing cryptocurrencies. This issue needs to be approached with great caution. After the failure of several major cryptocurrency exchanges, investors are pulling crypto from exchanges and trying to store coins in independent crypto wallets.

Indeed, Getmantsev suggested, pro-crypto legislation could even be suspended in Ukraine. He concluded :

“It is worth waiting to see what decisions are made by regulators in countries that have tried to introduce crypto into their legal systems. Haste can have very negative consequences in Ukraine. There is already a strong request for foreign currency withdrawals due to the war [with Russia].”

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