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Kristina Frunze

13 February 2018

Forex

Russia establishes ICO license regulations

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Russia establishes ICO license regulations, as the Ministry of Communications and Mass Media in Russia (Minkomsvyaz) issues a document outlining the licensing rules for initial coin offering projects.

13 February, AtoZForex The Ministry of Communications and Mass Media in Russia (Minkomsvyaz) has published a document outlining the licensing guidelines for the initial coin offering (ICO) projects.

Russia establishes ICO license regulations

Reportedly, one of the requirements that is established for the digital token issuers is a nominal capital of about 100 million rubles (approximately $1.7 million). Moreover, the issuers of ICO tokens need to have a license for development, issuance and production of the tokens. In addition, token issuers need to possess a specifically licensed bank account.

The document further notes that the ICO license will be granted by Minkomsvyaz for a period of 5 years. In the document, the authority defines a digital token 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.”

Following on this, Minkomsvyaz also obliges the ICO token issuers to provide audited ICO rules. This includes the issuer’s obligations to ensure the redemption of the digital coins on the basis of irrevocable public offer.

Another point in the document states that the issuance of the digital tokens should be carried out in Russian rubles through a non-cash settlement. Also, the company that issues tokens can only direct its profits to manage obligations to buy back those tokens at a nominal price.

Russia Digital Assets regulation

Earlier this January, the Ministry of Finance in Russia has issues a draft for the Digital Assets Regulation Bill. The Bill establishes and defines a regulatory system for ICOs, cryptocurrencies. It also cover such areas as mining and trading activities in the digital currency sector.

The authors of the Russian Digital Assets Regulation Bill also believe that a complete can of cryptocurrencies in Russia would cause instances of usage of cryptocurrencies for unlawful purposes.

As per the terms of the proposed bill, cryptocurrency and tokens are seen as a digital financial asset, which is not legal to use for payment purposes in Russia. However, the cryptocurrencies and tokens that are exchanged for other digital currencies and fiat currencies are legal for investors to trade only through authorized cryptocurrency exchanges.

Think we missed something? Let us know in the comments section below.

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