Russia Publishes Digital Assets Regulation Bill Covering Bitcoin, Mining and ICO’s

News and Analysis

Russia’s ministry of finance has published a bill on digital assets regulation, which, among other things, defines cryptocurrencies, tokens, mining, and ICO’s.

The bill states that cryptocurrency mining is an entrepreneurship activity, while cryptocurrencies and tokens represent a digital financial asset, and smart contracts are a kind of electronic contract.

The new rules suggest that cryptocurrency exchange operators have to be legally incorporated and meet the requirements of federal laws on stocks market and organized trading.

Additionally, companies running an ICO have to disclose the information on their beneficiaries, location of the issuer, data on validators, depositary agents, rights of token holders and the procedures for their exercising, the price of a token, and the effective dates of token procurement contracts.

Tokens can be issued by legal entities and individual entrepreneurs for the purposes of fundraising. There can be only one issuer for a particular token.

Unqualified investors may purchase a set of tokens for 50,000 rubles (under $1,000) at most per an ICO.

According to the document, exchange of cryptocurrencies and tokens for other cryptocurrencies, rubles and foreign currencies is allowed only via Russia-based exchanges.

The bill has no provisions on taxation so far.

Earlier this month, Russia’s Cryptocurrency and Blockchain Association said the proposals on creating and regulating a national cryptocurrency will be officially presented in July 2018, while a full-fledge launch would take a year after that.

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