New Rules: Russia Outlines Investor ICO Cap of $900 per Token Sale

New rules are being implemented with ICO investing in Russia, which will take effect in 90 days


The Russian Ministry of Finance has released its latest draft relating to the legal status of digital financial assets. The document is noteworthy as it helps clarify a number of regulations surrounding initial coin offerings (ICOs). The document follows on the heels of last month’s State Duma committee announcement of new regulations coming into effect in Russia no later than March 2018.

Discover credible partners and premium clients in China’s leading event!

Per the latest publication, Russia is tackling ICO investments with a series of rules. Consequently, the ministry has given specific focus to several laws that detail restrictions associated with payments and raising funds via ICOs. Key provisions include a maximum cap of $900 per token sale, equivalent to 50,000 RUB for each investor. Of note, these limits will take effect 90 days from the date of its release.

However, qualified investors, including both institutional and professional investors, will not see any limits on the amount they can invest in an ICO. In addition, the publication outlined strict details as to what a token sale should include.

According to the official website of the ministry, this includes restrictions on the practical use of cryptocurrencies within Russia. “It should be noted that use of cryptocurrencies as the means of payment will not be provided for in the territory of Russia.”

Moreover, Russia has also floated the ban of any advertisements and promotion of an ICO, prior to the actual launch of the token sale, as well as the official publication of all necessary documents associated with the company, and its respective ICO. The move is an obvious acknowledgement of the risky and potentially fraudulent nature of ICO investing.

Suggested articles

Silicon Valley Capital Finding its Way to Underserved Cities GloballyGo to article >>

While there are no shortage of reputable token sales, there also exists the potential for fraud and abusive entities preying on investors. In addition to this clarity, the ministry also specified an explanation regarding the exchange of cryptocurrencies to Fiat currency, which has seen varying opinions among global regulators.

“This draft law contains a disagreement with the Bank of Russia regarding the possible exchange of cryptocurrency to ruble, foreign currency and/or other property. According to the Bank of Russia, such deals can be permitted only for tokens that are issued for raising funds.”

 

In doing so, the ministry’s latest edict falls somewhat in the middle of the regulatory spectrum. On one hand countries such as China and South Korea have taken a hard lined stance against ICO investing, calling for the enforcement of full bans on this practice. By extension, other countries have more willingly embraced ICOs, albeit with certain rules in place.

Russia appears to be towing a course somewhat in between, with a mulled ban on advertising highlighting some regulatory teeth. Still, leaving the door open for ‘qualified investors’ does underscore the potential that exists as there are indeed reputable token sales being conducted.

 

Subscribe To Our Weekly Newsletter

Subscribe To Our Weekly Newsletter

Get interesting updates on Growth Hacking and Inbound Marketing from Industry Leaders

You won't Regret. Check your email for confirmation. 


Like it? Share with your friends!

527
185 shares, 527 points

What's Your Reaction?

Geeky
1
Geeky
Love
0
Love
Cute Cute
0
Cute
Lol Lol
0
Lol
OMG OMG
1
OMG
Win Win
0
Win

0 Comments

You will also like

More From: Blockchain

DON'T MISS

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Video
Youtube, Vimeo or Vine Embeds