The Russian Ministry of Telecom and Mass Communications has recently presented a new set of regulations for ICOs. The major highlights of all include the following:
Tokens will be sold for Rubles only.
Companies which are organizing the token sales would be obliged to guarantee the investors for selling back their tokens.
The coin issuers will now have to prove that they control at least 100 million Rubles of authorised capital in Russian bank accounts.
Let us dive deep into these to get better insights to all of the new regulations.
The new decree of the strict rules for Initial Coin Offerings (ICOs) introduced by the Russian Ministry was published through the official portal regulation.gov.ru The major focus of the draft was to regulate the token sales and protect the rights of the investors. The draft has defined the digital tokens as the records stored in the distributed information systems which are created using the cryptographic algorithms.
The companies which are conducting the ICOs are now required to give a guarantee to the investors they would be able to buy back their tokens at a very nominal price. The draft also states that all the startups must have an authorised capital of at least 100 million rubles in the Russian bank accounts. Apart from this all those businesses which are taking an advantage of crowdfunding offered through coin offerings are required to get mandatorily registered in the Russian Federation and should be licensed to issue cryptocurrency. They also have an additional option of applying for a special accreditation from the Telecom ministry on a voluntary basis.
The companies are also liable to use the funds which they have originally raised in order to finance only the project that guarantee them their ability to buy their tokens back, as per the statements mentioned in the draft. This simply means that the money they have received should be invested as a promise during the time of the sale. Besides all the major highlights, the draft has still been criticised by the representatives of the crypto sector for not covering and highlight some of the important parameters related to ICOs. They claim that the document does not say anything about the pre-sales which offers an opportunity to the investors for buying the tokens at discounted rates. Apart from this, there are various other factors and parameters which are left untouched in the document and needs to be considered for the betterment of the economic growth of the nation.