Russian Ministry Proposes Capital Mandates for ICO Organizers

One of Russia's government ministries has proposed a law that would introduce a capital threshold for initial coin offering (ICO) organizers.

AccessTimeIconFeb 13, 2018 at 4:45 a.m. UTC
Updated Sep 13, 2021 at 7:33 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

One of Russia's government ministries has proposed a law that, if approved, would introduce a capital requirement for initial coin offering (ICO) organizers.

The proposal, which was released by Russia's Ministry of Communications and Mass Media last week, seeks to enforce a series of requirements before any ICO activity can be officially accredited within the country.

One major element of the proposal is that ICO organizers must have at least 100 million rubles (or $1.73 million) worth of authorized capital and must be registered as a legal entity within the Russian territory, with bank accounts from licensed financial institutions. The proposal has been published as part of a public comment period which stretches from Feb. 9 to Feb. 23.

The resolution, if enacted, will also give the Ministry of Communications and Mass Media the right to accredit ICOs within 30 days after a project submits an application.

In addition, through the proposed regulation, the ministry wants to mandate inspections every three years in order to examine whether accredited projects are still in compliance with the requirements.

The new draft marks the latest step in the development of regulations around cryptocurrency and initial coin offerings in particular within Russia. It comes a month the Russian Finance Ministry submitted a proposal on Jan. 26 to regulate cryptocurrency investment as well as ICOs.

The Finance Ministry said at the time that these regulatory efforts are within the context of orders issued by Russian president Vladimir Putin last year.

Moscow image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.