It looks like Russia is going to avoid criminalizing Initial Coin Offerings and will try to profit from them, given their increasing popularity all over the world. Moreover, Russia wants the Ruble to be the indispensable part of the ICOs conducted in Russia.
Russian newspaper Kommersant has published the document drafted by Russia’s MinComSvyaz detailing the requirements for ICOs. According to the paper, the organizers will be accredited for a period of 5 years, and the accreditation will be voluntary. The minimal registered capital must be 1.7 mill USD and the issuing of digital tokens must be done in Rubles only. Moreover, ICO organizers will have to provide buy-backs from investors at the nominal price.
So far, no ICOs have been organized in Russia, and some experts say the proposed regulation will not make the country more attractive for investors. Additionally, many important issues remained unclear, for example, the situation with risky pre-ICO “conditional token” sales.
Artyom Inutin, Head of Investments at TMT Investments, stated that MinComSvyaz, “must not manage the processes within these financial platforms,” because that will only discourage the ICO organizers. He said:
“Documents often leave room for double interpretation and this could hurt the ICO process.”
Arseniy Sheltsin, head of Russia’s Association of Cryptocurrency and Blockchain (RACIB), called the regulations “disconnected from reality”. He stated:
“According to the document, it seems that the money must be collected so that it can then be given back instead of directing these funds towards internal business development and investment. The document uses inaccurate terminology, which can result in conflict.”