Russia’s ICO regulations are evolving rapidly. In December the State Duma committee drafted a bill to regulate cryptocurrencies and ICOs. In January, the Russian Finance Ministry granted formal legal recognition to ICOs. The Russian Ministry of Communications and Mass Media has now submitted a proposal for the licencing of initial coin offerings.
Capital requirements are just one of the elements ICO organisers would be subject to if the proposal becomes law. The ministry is recommending that ICO organizers should have 100 million rubles (about $1.7 million) of authorized capital.
Open to Public for Consultation
Projects would also have to be registered as a legal entity in Russia and hold a bank account with a licensed financial institution. Companies operating a token economy would be obligated to redeem tokens at a nominal price. The law would also require the Ministry to accredit or refuse to accredit ICOs within 30 days of an application being submitted.
The proposal defines digital tokens as “a record in a distributed information system created using cryptographic (encryption) means that certifies that the holder of the digital token has the right to receive from the person who posted the initial digital token of the initial (nominal) value token by presenting this token.”
The proposal was published on a Russian government portal and is open for public comment until the 23rd of February. If these proposals become law, they will make for one of the most detailed and specific regulatory frameworks in the world when it comes to blockchain projects.
Despite these stringent requirements, the Minister of Communications and Mass Media, Nikolai Nikiforov, also said it was important that projects in the digital economy are not over-regulated.