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Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors

Dec 28, 2017 Posted /  2047 Views

Russia Unveils Proposed Regulation Putting Limits on ICOs and Investors

The Russian finance ministry has revealed its proposals for the regulation of initial coin offerings (ICOs) in the future bill to be offered this week. They include the maximum amount an ICO can raise as well as an investment limit for unqualified investors.

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The Russian Ministry of Finance has prepared a bill to be suggested on December 28. Deputy Finance Minister Alexei Moiseev described the bill, as reported by Tass on Wednesday:

"A maximum of 1 billion rubles [~ USD$17.3 million] can be raised through an ICO, and each unqualified investor will be able to invest a maximum of 50,000 rubles [~$864]."

He clarified that a qualified investor could invest any amount.

“We want to make the bill as direct as possible and minimize the reference to the norms of the Bank of Russia so that the regulation of ICOs does not become another currency control,” Moiseev emphasized.

Currently, ICOs and crypto currencies are not regulated in Russia. However, President Vladimir Putin has mandated the government to create a regulatory framework for them by July 1 of next year.

Market Participants’ Comments

Following Moiseev’s statement, market members reportedly welcomed the proposals, according to Ria Novosti.

“I think this is an excellent starting position for the market, that there are some restrictions on the amount of general investment and qualification of investors,” said Eugene Gordeev, the originator of Decenter portal.

For “ an average user,” he was quoted by the publication, “50 thousand rubles is more than enough” to start investing in an ICO. Based on his experience with token sales, he noted that retail investors usually invest one thousand dollars.

Mansour Hüseynov, director of the Cryptolife Investment Fund, commented: 
"The proposals for regulating ICOs look inexpensive, [however] the threshold of 50 thousand rubles seems to be understated, I would propose 500-600 thousand rubles [~$8,635-104,400]."

Earlier this week, the country’s finance minister Anton Siluanov said Russia 24 TV channel in an interview that only “professional traders should work with cryptocurrencies,” not ordinary citizens who may see bitcoin as a way to get rich quick.

According to the director of the State Duma Financial Markets Committee, Anatoly Aksakov, the bill for the regulation of both cryptocurrencies and ICOs is expected to be adopted by the end of March.

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Tags: icos Investors Russian initial coin offerings ICO can raise

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