Draft Regulations Set USD 1.7 Million Initial Capital Threshold for Russian ICO Issuers

Digital token sellers will get a 5-year license

by Viko
12 February • 1 min
In Regulation

Russian companies that want to raise capital through the sale of digital tokens must have an initial capital of at least RUB 100 million (USD 1.7 million), a draft set of regulations published by the Ministry of Communications and Mass Media (Minkomsvyaz) revealed on Monday.

Potential token issuers must be also registered in Russia, and obtain a license for the development, production, and distribution of cryptographic resources. Licenses will be issued by the ministry for a period of five years.

The draft regulations for initial coin offerings (ICOs) envisage also obliging token issuers to buy back their digital coins at par value, based on an irrevocable public offer. Hence, ICO issuers should direct any profit from the sale of tokens solely towards securing that obligation.

The initial sale of digital tokens will be allowed to be only in Russian rubles through non-cash transactions.

The draft document is open for public discussion until 23 February.

Russia’s Minister of Communications and Mass Media Nikolai Nikiforov said earlier this month that ICO regulations are much necessary and the number of ICO issuers must be restricted.

Nikiforov has previously said that Bitcoin is unlikely to be fully legalized as a payment method in Russia.