The Russian government has submitted a proposal regarding the accreditation of Initial Coin Offering (ICO) issuers, for which the regulators are accepting the public comments. These accredited organizations have to comply with a set of rules inclusive of having a capital of 100M rubles and to go through inspections every 3 years.
Accrediting the ICO Issuers for 5 years
The Russian Ministry of Communications and Mass Media (Minkomsvyaz) has published a document in order to authorize the issuers of Initial Coin Offerings (ICOs) that reads “on a voluntary basis for a period of five years.”
The document establishes the licensing rules for ICO organizations that issue digital tokens. Published on the official portal of normative legal acts of the Russian government, it is currently waiting for the public comments on their plan.
A few of the key requirements for the digital token issuers are to have a license for the production, development, and issuance of tokens along with having a nominal capital of about 100 M rubles i.e $1.7 M approximately. In addition to this, token issuers are also required to obtain a special licensed bank account, that will be obtained as a result of the sales of tokens.
Minkomsvyaz will be the one to grant the ICO license and that too for a duration of 5 years.
As per the document:
“A digital token means 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 (initial) digital token of the initial (nominal) value token by presenting this token using a distributed information system.”
A Series of Mandatory Rules for ICO’s
The ICO issuers will have to follow certain rules that are mandatory, namely:
“The duty of the person issuing the digital tokens, to redeem the digital tokens at the nominal price from any bearer of the digital token on the basis of an irrevocable public offer; the obligation to issue digital tokens for Russian rubles through non-cash payment, and the obligation to issue digital tokens for Russian rubles through non-cash payment.”
Moreover, the accreditation or refusal of accreditation will be decided by the Ministry of Communications within 30 days. These accredited organization will also be subject to inspection for every three years.
At the end of last month, Russian Ministry of Finance presented a draft of the Digital Assets Regulation Bill that covered the regulatory system for ICOs & cryptocurrencies along with mining and trading activities.
Also, in early February, Nikolai Nikiforov, the Minister of Communications and Mass Media, commented that: “It is very important in all projects of the digital economy not to over-regulate what is just emerging.”
What are your views on Russia’s proposal to accredit the ICO issuers? Let us know your thoughts below!