Despite the widespread adoption of crypto, some countries still don’t see a need in regulating them. On May 16, Russian news agency Fontanka published a report in which Dmitry Medvedev, the Prime Minister of Russia, confirmed that his government isn’t treating the regulation of crypto as a priority.
Medvedev made his statement while speaking at a legal conference in St. Petersburg. He reportedly opined that cryptocurrencies have lost their appeal and that there is now a declining level of interest in them. He went on to cite the fact that cryptocurrency values, as well as the market, have continued to plunge.
To him, this signifies a lack of investor interest and is a signal that the government doesn’t need to focus so much on enforcing regulations. In part, he said, “Nowadays, the popularity of cryptocurrency has decreased, and regulatory issues may not be so relevant.”
The comments show a sharp heel-turn from last year, where he suggested at a similar conference, that the country’s regulators ought to work on the introduction of some basic laws to help guide the operation of crypto market players within their border. Ironically, the comments he made last year were just in the midst of the crypto winter that he referenced today, and while the values of cryptocurrencies are still seeing fluctuating levels since then, he concluded that there was always a possibility of the crypto market rallying.
At the time, he said regulations would be a necessity when the government sees that interest is piqued once again. Arguing with Medvedev’s sentiment is a bit of a two-way street. For one, the decline in the crypto market is quite notable, and it could signify that a lot of people just aren’t interested in cryptocurrencies as they used to be.
However, some would argue that this bear market is nothing more than an adjustment period. Markets peak and dip at certain points, and while the crypto market is currently seeing a downturn, there I definitely a lot f hope that crypto prices would go back to the lofty heights that they attained in the middle of December 2017.
So, why not just enforce regulations now in preparation for such a time? Bitcoin’s prices have been rallying or the past few days, and on May 14, the currency crossed the $8,000 mark for the first time since July 2018. This can only mean one thing; digital assets could be poised for a bullish run—something that hasn’t been experienced in a while.
An increase in prices would only lead to an increase in interest, and it would be much better if the Russian government had rules in place that would guide the actions of the numerous individuals and companies who would want to get in on crypto when that time comes.