Russian departments and regulators continue working on strengthening the control over the cryptocurrency industry in the country. Ministry of Telecom and Mass Communications prepared requirements for the release of the digital tokens. ICO founders will be obliged to use the obtained means to let the investors repurchase them at a nominal price. The companies accredited by the Ministry of Telecom and Mass Communications will be assigned to the implementation of obligations.
The project presented by the government is already published on the official portal. According to the document, a digital token is considered to be a record in the distributed information system which is created with the use of cryptographic algorithms. Thus, the record certifies the fact that the owner has the rights to receive the initial cost of a token from the organizer of the initial release of digital tokens.
Organizers will be provided with an accreditation for carrying out ICO for a period of five years. The procedure of accreditation is voluntary. The Ministry of Telecom and Mass Communications will control all the processes. For receiving the accreditation, the company must fit the following conditions: the presence of authorized capital not less than 100 million rubles, license for development, production and distribution of cryptographic means. Moreover, the organizer of ICO must have a registered bank account in the Russian bank to operate the money received as a result of ICO.
In Russia, the release of digital tokens can be made only for Russian rubles under the clearing settlement. The organizer of ICO is obliged to repurchase them at a nominal price from any bearer on the basis of the so-called irrevocable public offer. Besides, the project provides a duty for “the person releasing digital tokens to use the money received from purchasers of digital tokens only for the purposes connected with the maintenance of an opportunity for execution of the obligation for repayment of digital tokens at a nominal price”. The accredited organizer of ICO will monitor the observance of requirements.
Market participants believe that the document doesn’t consider many aspects of the ICO and the tokens primary placement processes. For example, there’s no pre-sale mentioned, when investors can receive tokens at a discount. Also, many ICOs are carried out with the obligation from investors not to sell tokens during the certain period of time.
The director of the Russian association of cryptocurrencies and blockchain Arseny Shcheltsin considers that the resolution completely not meeting any crypto-industry rules and standards. It is said in the documents that funds must be being gathered with an opportunity to give them, but not to direct them at the development of the project. This contradicts both to laws of business, and the interests of organizers of ICO, even the most honest ones, having a ready-made product. Maybe the bill is created according to the United States Securities and Exchange Commission analogy. The American regulator can demand funds from violators of the investors’ rights.
One of the declared reasons why the Ministry of Telecom and Mass Communications prepares the bill on regulation of ICO in Russia is the desire to protect participants of the market. 59% of all last year ICO either bankrupted or almost bankrupted. The third variant is when the ICO founders left with the gathered money. In total, 902 ICO happened last year: 142 didn’t manage to raise funds, 276 succeeded but lost everything just after the end of the ICO. The bankrupt companies collected about $104 million. In most cases, participants didn’t receive the means back.