Russia and China have placed big stakes on blockchain game during the latest years. While that is a good thing, stepping over to cryptocurrencies it may have a huge effect on the market in general. Russia has already started moving towards this end while China has not yet made noticeable steps but the pronounced plans are exciting.
For Russia, it’s a matter of when not if. In early March last year, Vladimir Putin, Russia’s president, directed respective government bodies to legalize virtual currencies through passing bills in the country’s parliament.
It was reported that there were two bills that, if passed, would legally recognize cryptocurrencies in the country. The bills sought to clear the air regarding initial coin offerings and crowdfunding procedures with the Ministry of Finance in Russia being concerned with the former.
Although the country’s Ministry of Finance and the central bank have agreed, to a bigger percentage, on how to handle virtual currencies, they were still divided on how to approach issues concerning virtual currency exchanges.
Anatoly Aksakov, Chairman, State Duma Committee for Financial Markets, while commenting on how the two bodies are yet to come to an agreement said:
“The central bank is against the legalization of this type of digital currency since in this case, citizens can start actively investing in crypto-tools, not taking into account possible risks.”
The chairman indicated that the two bills – one from the central bank and one from the finance ministry – will be discussed by the Duma. However, another bill seeking to form a regulatory framework around crypto mining activities in Russia was also set to find its way into the Russian parliament.
Apart from the bills, Russia, being one of the big blockchain players, has recently recorded some positive moves towards taking cryptocurrencies to the masses; through the ‘Russian Facebook.’
VKontake, the ‘Russian Facebook’, has recently been purported to be in the process of developing its own virtual currency. The social media platform indicated that it will give users the power to accumulate the virtual currency, VK Coin. Additionally, the coin can be sent to other users on the platform and be used to buy goods. However, the finer details of how all these will be done are yet to be provided.
On April Fool’s day, VK released an app for mining VK Coin. Since most of the things done on this day are not to be trusted 100%, the app is only helping accumulate a stash of VK Coins. Instead of mining, or maybe this is their way of mining, the app increases the balance by 0.001 VK Coins at the press of a button.
China, another member among the big blockchain players, is yet to shift from heavily investing in blockchain and consider virtual currencies. Experts are anticipating that if China embraces cryptocurrency, then bulls would be let loose, pumping the market.
For example, Sonny Singh, the COO of Bitpay, a crypto payments processor, told Bloomberg that the virtual currency market in countries like the U.S is considerably stable.
“Places like the United States and Europe are kind of stable in the realm of crypto-currencies but there are many other countries that need to consider crypto. Countries such as India, China, and Russia have vehemently opposed crypto and if any one of them changes their regulations then there will be a massive Bitcoin boom”
However, for a “massive Bitcoin boom,” countries that have criminalized cryptocurrencies, such as China, will have to get on board. Also, the involvement of the two big blockchain players in cryptocurrency will help stabilize the crypto market.
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