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Russia set to launch a national crypto exchange; Ethereum price continues climbing the chart


www.fxstreet.com 25 November 2022 00:41, UTC
Reading time: ~3 m

  • Russian lawmaker Sergei Altukhov confirmed the lower chamber has been working on a draft amendment to launch a national crypto exchange.
  • Belgium announced that cryptocurrencies without an issuer are not a security, sparing them from following financial rules.
  • Ethereum price is on the verge of initiating an almost 12% rally, trading at $1,203.

Russia triggered one of the biggest crashes of the crypto market this year, even before FTX, in February, after waging war against Ukraine. The consequential global sanctions led to the citizens of the country relying on cryptocurrencies to conduct their business. Russia is now preparing to capitalize on this by amending its law.

Russia to regain the money from taxes

Russia's State Duma Committee on Economic Policy member Sergei Altukhov said in a statement to local media that the lower chamber has been working on a draft legislative amendment. to the law "On Digital Financial Assets", which would allow the development of a state-run crypto exchange.

This cryptocurrency exchange will help Russia reclaim the losses the country incurred by lack of taxation. Altukhov said,

"It's pointless to say that cryptocurrency doesn't exist, but the problem is that it circulates in a large flow outside of government regulation. These are billions of rubles of lost budget revenues in the form of taxes."

Russia's national crypto exchange will be limited to only declaring and converting digital currencies. The exchange would not be a tool for the distribution of cryptocurrencies as a means of payment.

Belgium declares Bitcoin and Ethereum non-security tokens

While Russia is leaning in on extending its administration over cryptocurrencies, Belgium is freeing certain digital assets from the financial rules. According to a classification published by Belgium's Financial Services and Markets Authority (FSMA), assets without an issuer will not be counted as security.

The FSMA stated that the rule deciding an asset's classification is neutral as regards technology. This means that its status as security is regardless of the asset being derived from blockchain or other origins. Instead, digital assets with an issuer are more likely to be defined as security.

“Nevertheless, if the instruments have a payment or exchange function, other regulations may apply to the instruments or the persons who provide certain services relating to those instruments,” the FSMA communication reads.

Ethereum price continues climbing the chart

Ethereum price, after rising by more than 10% in the last 48 hours, returned to the $1,200 zone, trading at $1,203 at the time of writing. Going forward, ETH could benefit from the broader market bullish cues as it aims at $1,231 as its next target.

If Ethereum price breaches the $1,231 level, it would be able to flip this immediate resistance into a support floor. This would be necessary for the altcoin to climb its way to the critical resistance level at $1,279.

Reclaiming this level would provide ETH with the necessary bullish pressure to tag $1,345, which forms the low of the inefficiency from $1,345 to $1,427, labeled as the Fair Value Gap (FVG). This would mark a 12% rally for the cryptocurrency from its current trading price.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

However, if the price declines, ETH would be looking to test its immediate support at $1,159. Closing below this level would push Ethereum price to tag $1,084, losing which would invalidate the bullish thesis and result in the altcoin hitting the June lows of $1,013.

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