Companies interested in launching an initial coin offering (ICO) in Russia will now be required to obtain an official license first. ICO licenses will only be granted if the issuer is able to meet additional requirements, including about $1.7 mln in nominal capital.
Russia’s Ministry of Communications and Mass Media (Minkomsvyaz) published a document outlining the new ICO licensing rules on Monday, February 12. The new rules stipulate that companies launching an ICO possess at least 100 mln rubles, or about $1.7 mln as of February 13, in nominal capital, which is also known as authorized capital.
Further, ICO issuers must have a license for the development, production, and issuance of digital tokens as well as specially issued and licensed bank account to collect funds raised in the offering. Issuers must also provide audited ICO rules which meet certain obligations, including a guarantee of the redemption of digital coins on the basis of an irrevocable public offer.
Once the requirements have been met, Minkomsvyaz will grant the license for a duration of 5 years.
Digital token issuance must be completed Russian rubles via bank transfer. Additionally, the token issuer must direct its profits so that they maintain obligations to be able to buy back those tokens at a nominal price.
Russia’s Ministry of Finance introduced a draft of the Digital Assets Regulation Bill, which defines and establishes a regulatory system for cryptocurrencies, ICOs, as well mining and trading activities, to the Russian State Duma on January 25th.