New Rules: Russia Outlines Investor ICO Cap of $900 per Token Sale
- New rules are being implemented with ICO investing in Russia, which will take effect in 90 days
The Russian Ministry of Finance has released its latest draft relating to the legal status of digital financial assets. The document is noteworthy as it helps clarify a number of regulations surrounding initial coin offerings (ICOs). The document follows on the heels of last month's State Duma committee announcement of new regulations coming into effect in Russia no later than March 2018.
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Per the latest publication, Russia is tackling ICO investments with a series of rules. Consequently, the ministry has given specific focus to several laws that detail restrictions associated with Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term and raising funds via ICOs. Key provisions include a maximum cap of $900 per token sale, equivalent to 50,000 RUB for each investor. Of note, these limits will take effect 90 days from the date of its release.
However, qualified investors, including both institutional and professional investors, will not see any limits on the amount they can invest in an ICO. In addition, the publication outlined strict details as to what a token sale should include.
Moreover, Russia has also floated the ban of any advertisements and promotion of an ICO, prior to the actual launch of the token sale, as well as the official publication of all necessary documents associated with the company, and its respective ICO. The move is an obvious acknowledgement of the risky and potentially fraudulent nature of ICO investing.
While there is no shortage of reputable token sales, there also exists the potential for fraud and abusive entities preying on investors. In addition to this clarity, the ministry also specified an explanation regarding the exchange of cryptocurrencies to fiat currency, which has seen varying opinions among global regulators.
“This draft law contains a disagreement with the Bank of Russia regarding the possible exchange of cryptocurrency to ruble, foreign currency and/or other property. According to the Bank of Russia, such deals can be permitted only for tokens that are issued for raising funds.”
In doing so, the ministry's latest edict falls somewhat in the middle of the regulatory spectrum. On the one hand, countries such as China and South Korea have taken a hardline stance against ICO investing, calling for the enforcement of full bans on this practice. Other countries have more willingly embraced ICOs, albeit with certain rules in place.
Russia appears to be towing a course somewhat in between, with a mulled ban on advertising highlighting some regulatory teeth. Still, leaving the door open for 'qualified investors' does underscore the potential that exists as there are indeed reputable token sales being conducted.
The Russian Ministry of Finance has released its latest draft relating to the legal status of digital financial assets. The document is noteworthy as it helps clarify a number of regulations surrounding initial coin offerings (ICOs). The document follows on the heels of last month's State Duma committee announcement of new regulations coming into effect in Russia no later than March 2018.
Discover credible partners and premium clients at China’s leading finance event!
Per the latest publication, Russia is tackling ICO investments with a series of rules. Consequently, the ministry has given specific focus to several laws that detail restrictions associated with Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term and raising funds via ICOs. Key provisions include a maximum cap of $900 per token sale, equivalent to 50,000 RUB for each investor. Of note, these limits will take effect 90 days from the date of its release.
However, qualified investors, including both institutional and professional investors, will not see any limits on the amount they can invest in an ICO. In addition, the publication outlined strict details as to what a token sale should include.
Moreover, Russia has also floated the ban of any advertisements and promotion of an ICO, prior to the actual launch of the token sale, as well as the official publication of all necessary documents associated with the company, and its respective ICO. The move is an obvious acknowledgement of the risky and potentially fraudulent nature of ICO investing.
While there is no shortage of reputable token sales, there also exists the potential for fraud and abusive entities preying on investors. In addition to this clarity, the ministry also specified an explanation regarding the exchange of cryptocurrencies to fiat currency, which has seen varying opinions among global regulators.
“This draft law contains a disagreement with the Bank of Russia regarding the possible exchange of cryptocurrency to ruble, foreign currency and/or other property. According to the Bank of Russia, such deals can be permitted only for tokens that are issued for raising funds.”
In doing so, the ministry's latest edict falls somewhat in the middle of the regulatory spectrum. On the one hand, countries such as China and South Korea have taken a hardline stance against ICO investing, calling for the enforcement of full bans on this practice. Other countries have more willingly embraced ICOs, albeit with certain rules in place.
Russia appears to be towing a course somewhat in between, with a mulled ban on advertising highlighting some regulatory teeth. Still, leaving the door open for 'qualified investors' does underscore the potential that exists as there are indeed reputable token sales being conducted.