The speculations around the Russian ICO space seem to be coming to an end as it has been announced by the Finance Ministry that a draft is ready to be deliberated for legislation. Last year, it was reported that the nation’s leader had mandated the Finance Ministry to prepare a draft that would take care of all aspects crypt I currencies and initial coin offerings.
Prior to then, there had been the different rumor on the government stance on ICO ranging from plans to ban it, a plan for a Russian cryptocurrency to a liberalization policy that would make Russia a digital currency El Dorado.
Last week, the Finance ministry came up with the final draft that specified rules on ICOs as affecting investors and companies. Companies are required to submit information such as websites and the person or persons ultimately behind the Initial Coin Offering. The draft also limits the time frame of promotional activities for ICO by making the promotion of token limited to the period of the crowdsale.
Russia has consistently made progress in regulatory activities on cryptocurrency since the president gave directives bordering on regulations. This is clearly due to the interest he has in cryptocurrencies and the blockchain technology.
The president had earlier proposed a cyber-initiative that could be defined as ambitious after a meeting with some leaders in the crypto community. President Putin’s proposition was a multinational cryptocurrency that would connect economies of countries in various continents.
The Russian government is determined to pursue the initiative. In December 2017, the Russian apex bank announced the plan to create the multinational digital currency for the BRICS and EEC countries. BRICS is an acronym for Brazil, Russia, India, China and South Africa, while the EEC are European Economic Community.
Member states are countries whose economies are at similar levels of advancement. The concept of President Putin would connect these countries through a cryptocurrency that would drive the capacity growth of these countries.
For the project to stand a chance of success, the countries involved would have to amend their laws to make provision for the proposed cryptocurrency as a legal tender in their country. This development is being watched keenly by the blockchain community because its impact will be widespread as a vehicle for digital currency adoption.
A nagging problem for even leading digital currencies such as Bitcoin which many still hold as digital assets. The proposal could lead to adoption by up to 40 percent of the global populace.
A draft for a legal framework that should be adopted by Russia for digital currencies and ICOs has already been passed on to the State Duma, awaiting passage which is expected by Q3 of 2018. It is interesting seeing that the government is keen to create an Initial Coin Offering friendly environment for the blockchain technology to thrive.
Other countries that have adopted similar policies are Japan, Sweden, Estonia, Belarus, and Switzerland. In the draft submitted by the Finance Ministry, tokens were classified as other properties not as securities as is common in countries with restrictive policy apparently to give crypto startups room to thrive.
The expected regulation would impose taxes on mining and trading of cryptocurrencies, it also places limits on the amount unqualified investors are allowed to invest to be not more than $869 while ICOs shall not raise more than $17.4 million.