The long-term acceptance of cryptocurrency trading as a valuable sector in the financial trading market is reliant on several things. Though one requirement for mainstream adoption of the market rests on the public’s ability to look past volatility and contribute to higher trading volumes, this acceptance is predicated on the willingness of major trading platforms to list the currency alongside more traditionally-accepted forms of investment.
If massive exchanges typically known for the listing of securities in the traditional fiat market begin to similarly list digital currencies for trade, it adds a much-needed sense of legitimacy to the assets as tradable securities. Analysts speculate that popular listings could help to revitalize the crypto market. It could solve key concerns regarding quickly-falling volumes, which have contributed to dwindling prices.
Moscow To List ICOs
This dream for the cryptocurrency community may be closer than we think, too. In fact, The Moscow Exchange has recently listed its intention to list data and analysis for crypto markets on their traditional exchange. Its chief executive, Alexander Afanasiev, recently elaborated in an interview with Reuters that his exchange is planning to prepare its “basic infrastructure” in an effort to accommodate the efforts of some ICO companies to list their tokens, as well as additional details, alongside traditional fiat stocks listed on the exchange.
Some tokens could also be backed by regulatory agencies, the director hinted in his first interview on the innovative new move.
In the beginning stages of the transition, however, the exchange will not list the tokens directly. The display of the tokens is different than the listing of the tokens. For example, a listed token can be purchased and traded directly on the exchange, whereas simply naming and displaying the token provides traders with the information necessary to go out and purchase or trade the tokens on external sites.
Major Impacts For ICOs
The impact for the ICO market could be significant. The main obstacle to listing in the traditional, buyable sense, is that Moscow has not recognized the tokens as legitimate protected assets. Although recent remarks from the Russian government have hinted at the concept of recognizing digital currencies as legitimate securities, right now the government has not taken the drastic step.
Once this happens, it is likely that the exchange will be willing to list the currencies as legitimate, tradable assets. This is dependent, however, on interest from investors. In any case, the recent remarks from the exchange are significant steps in the direction of listings for digital currencies created to fund startup companies within ICOs.
Russia’s relationship with cryptocurrencies and ICOs has been splotchy in the past year, and much is still in the air. The country’s parliament passed two legislation pieces regulating digital currencies, as well as blockchain technology and the ICO industry. But while the legislation was able to set the groundwork for responsible legalization and normalization, the government banned the use of cryptocurrencies for payments within Russia.
While the listing of ICO tokens on the Russian exchange would mark a significant move for the market, a path of responsible legalization and regulation is a necessary prerequisite to the realization of this ICO market dream.