In yet another crypto development, Russia announced on February 11, 2018, that they will be drafting a decree to accredit Initial Coin Offering (ICO) issuers. The move hopes to render illicit investing in the crypto space more legitimate.
String of Legislation
Russia has not shied away from staking claims in the crypto industry. Whether it be mining regulation, adoption rates, and even rumors of a cryptoruble, the administration has been heavily invested in the sector.
While some critics may claim that this string of legislation flies in the face of the tenants of virtual currencies, Vladimir Putin is determined to monitor any developments in the space. Back in October 2017, the president pushed five executive orders regarding “the use of digital technologies in the financial sphere.”
These orders also include developing an exclusive virtual payment channel between the Eurasian Economic Union (EAEU). Further, Putin hopes to effectively tax any income incurred via mining activity within the country’s borders.
In January 2018, the Russian Finance Ministry submitted a more specific proposal as to determine how best crypto investment and ICOs should be handled.
On February 11, 2018, the fruits of this proposal were actualized in a proposed law that introduced certain requirements for ICO founders. The Ministry of Communications and Mass Media of the Russian Federation released a document which outlined a number of finer points:
- ICO issuers must furnish at least 100 million rubles (Roughly 1,425,257 EUR).
- Founders are subject to continuous inspection over the course of three years to ensure legal requirements are being upheld.
- The firm must be licensed and legally accountable in the Russian state.
While not entirely positive, the attention that the new found funding scheme is earning will surely legitimize the country’s efforts to embrace the technology.