Next ‘Crypto Spring’ Could Be ‘Unlike Any Other’ – Because of This Factor

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023

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

The warning came from Danil Getmantsev, the Chairman of the Verkhovna Rada’s Committee on Finance, Tax, and Customs Policy. The MP told Glavcom:

“At the end of this crypto winter, a completely different landscape for the cryptocurrency market is likely to emerge in the coming spring.”

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

But, he noted:

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

Getmantsev equated the fall of crypto exchanges to “the collapse of the stock market.”

More Reasons Why Crypto Spring Could Be Challenging

Getmantsev also had warnings for those hoping that the “legalization of cryptocurrencies” would provide the government with a significant revenue boost – mainly because “some cryptocurrencies are significantly losing value.”

He spoke about crypto “legalization” efforts in Ukraine, which he claimed would not boost the sector, either.

He explained:

“I would definitely not overestimate the fiscal effect of the legalization of cryptocurrencies. This issue must be approached very carefully. After the bankruptcy of several large cryptocurrency exchanges, investors are withdrawing crypto from exchanges and try to store coins in independent crypto wallets.”

Indeed, Getmantsev suggested that pro-crypto legislation could even be put on hold in Ukraine. He concluded:

“It is worth waiting to see what decisions are made by regulators in countries that have attempted to bring crypto into their legal systems. Haste can lead to very negative consequences in Ukraine. There is already a great demand for overseas currency withdrawals due to the war [with Russia].”