Russia has introduced a new regulation related to the use of crypto technology. This week, an official state’s representative has published a document that will probably change the way that investors and developers are getting involved in ICO’s projects.
The announcement was made on 12 February 2018 by the Russian Ministry of Communications and Mass Media. The document is supposed to introduce the requirement of a license related to the creation and development of ICOs projects. The intention is to bring to the attention the need to comply with this new rule.
An important aspect found in the document is that issuers who want to design and launch a project that involves digital tokens are forced to own $ 1.7 million equity. They are also required to hold an authorized license obtained from an involved bank.
The document mentions that the license will be active for 5 years. Note that digital tokens are defined in the official act as an “encrypted record in a distributed ledger technology (DLT) system which certifies the token’s owner’s right to obtain the initial price of the token from the token’s issuer via a DLT system”.
The issuers are forced to produce digital tokens only in the Russian national currency. Also, they will be able to invest their profit only to maintain the necessary amount of tokens on the market by placing a new order at an initial price.
It seems that Russia doesn’t intent to ban the crypto system. However, the officials are trying to control it and benefit from the obtained earnings.
What’s your opinion about Russia’s new law related to the ICO projects?