Russia’s Ministry of Finance Drafted ICO Regulation Act

nRunaway Comment: Although Russia’s attitude towards cryptocurrencies is still not clear enough, progress has been made in the relevant legislative work in the area. At present, Russia’s Ministry of Finance has released a draft law aiming to standardize the investors’ participation in token sales and clearly set forth the requirements for such activities. As the draft must also be validated by other legislative bodies to take effect, the process of this work has become one of the concerns of the cryptocurrency community.n
nTranslation: Inan
The Russian Ministry of Finance recently drafted a federal law on the regulation of digital assets and ICOs.n
The new bill, released by the Ministry of Finance on January 25, outlines the needs to be met by ICO-sponsored projects and investors wishing to participate in token sales. Since it was introduced by government agencies, the draft must also be formally governed by a review by legislative bodies such as the Russian State Duma and the Federal Council.n
Under the terms of the draft, licensed professional investors who abide by the Russian securities law will have unlimited investment in the field of cryptocurrencies, while substandard investors invest up to 50,000 rubles (About 900 U.S. dollars).n
In addition, the proposed act stipulates that Russian ICO organizers must disclose information to fully comply with regulatory requirements, including the full name of the issuer of the token, the website of the project, the network provider, and the fixed operator of the organizer .n
However, the draft intends to prohibit the sale of tokens before the promotion, it wrote:n
n”No token may be offered to potential buyers in any form or manner of promotion until they are issued.”n
nThis new draft is the latest in Russia’s regulation of tokens sales. According to another explanation of the draft, it was drawn up on the basis of instructions issued by Russian President Vladimir Putin on October 21 last year.n
The draft also validates the remarks made by a legislator in December last year, when he said that Russia was discussing plans to formulate new laws and regulations in this field.n

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