Russian Ministry Proposes Law To Regulate ICO Issuersbr>
Russia’s Ministry of Communications and Mass Media has proposed a law that would introduce a capital requirement for initial coin offering (ICO) issuers. The proposal has been published on the Russian government’s portal of normative legal acts and is currently open for public comments.
According to the draft, ICO issuers would be required to have nominal capital of about 100 million rubles ($1.7M USD). ICO issuers would be required to register as a legal entity within the Russian territory and also get a license for the development, production and issuance of tokens. Additionally, ICOs are obligated to possess a specially licensed bank account.
The ministry also requires issuers to provide audited ICO rules, including the issuer’s obligations to guarantee the redemption of digital tokens on the basis of an irrevocable public offer. The law, if enacted, will also give the ministry the right to accredit ICOs within 30 days after a project submits an application. Accredited issuers will be subject to inspections every three years for compliance with the requirements of the provision.
Despite the strict requirements for ICO organizers, the Minister of Communications and Mass Media of the Russian Federation Nikolai Nikiforov said “it is very important in all projects of the digital economy not to over-regulate what is just emerging.”
He added that digital tokens should be produced by some accredited organizations. It cannot be an independent activity of an unlimited number of persons. It is also necessary to authorize these digital tokens sales for Russian rubles.