Ever since crypto prices exploded in the fourth quarter of 2017, investors have paid less and less attention to the regulatory environment around cryptocurrencies. That might be a mistake.
Debates over how to regulate cryptos are far from over.
For example, the Russian Ministry of Finance just released its proposed regulations for Initial Coin Offerings (ICOs). (Source: “Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors,” Bitcoin.com, December 27, 2017.)
Although the hard deadline for ICO regulations is July 1, 2018 (set by President Vladimir Putin himself), the bill is scheduled for submission today. It appears to walk a fine line between bullish and bearish on cryptos.
The bill suggests limiting the amount of money that ICOs can raise to $17.3 million. Likewise, “unqualified” investors would have a maximum $864.00 for investing in ICOs.
Daily Ethereum Chart:
“Qualified” investors can invest as much as possible.
“We want to make the bill as direct as possible and minimize the reference to the norms of the Bank of Russia so that the regulation of ICOs does not become another currency control,” said Deputy Finance Minister Alexei Moiseev.
Some would argue that Russia is undermining the integrity of blockchain technology by forcing ICO investment into the hands of “qualified” investors. After all, blockchain tech is all about disintermediation—the removal of middlemen. Yet under these laws, retail investors wanting to invest in crypto would have to rely on professional money managers rather than their own wits.
On the other hand, proponents of the bill could argue that financial safety is an issue. Retail investors are excluded from many different markets, such as those dealing in derivatives or venture capital. Each of those markets requires specialized knowledge for risk management and are therefore subject to barriers to entry. Maybe cryptocurrencies are the same.
Whatever your opinion, it is important to remember that these debates are far from over. New regulatory decisions are happening on a week-by-week basis.
Analyst Take:
We are watching regulatory developments closely. However, we see nothing (yet) that alters our $1,500 Ethereum price forecast for 2018.
Also Read: Ethereum Price Prediction for 2018
Source: Price Confidential