Russia is aiming to legalize Initial Coin Offerings (ICOs) with the country’s new set of revised digital assets laws. Alexey Moiseev, Russia’s Deputy Finance Minister, expressed his thoughts on the legalization of ICOs at the Economic Forum held in Yalta. The bill is expected to be reviewed by the Duma, the Russian assembly, in May 2019.
The Conundrum of the Digital Assets Bill
The digital asset laws have been facing quite the heat already. Yuriy Pripachkin, Russian crypto industry and blockchain network’s President, has voiced his disapproval regarding the regulations.
According to him, the release of this would lead to massive government invasion and pressure on the crypto world. Russia’s strict laws could also result in the moving of crypto enterprises to friendlier nations thus dismantling the nation’s economy.
Another noted critic and crypto entrepreneur, Roman Khoroshev, stated that this law would make Russia’s Bank the authoritative figure in deciding the sale of assets to non-accredited investors.
If this law passes, then Russia’s Central Bank will have the sole power to decide which digital assets can be bought by unaccredited investors. The law doesn’t regulate tracking of cryptocurrency outside the jurisdiction of Russia which is a huge problem.
According to Russian law, to be deemed as accredited, one must have an asset possession of over 10 million rubles roughly $150,000. The amount buyable by law by unaccredited investors is 600,000 rubles or $10,000.
Regulations: Boon or Bane?
The government as of late has been following a paradoxical chain of events with the center entirely focused on its mission to stop the growth of cryptocurrencies like Bitcoin. There have also been reports of government officials stocking up Bitcoins by the billions. The country has also been trying its hardest to control the free-flowing cryptosphere by imposing unnecessary regulations and reforms.