Russian Ministry suggest Capital Mandates for ICO Organizers
Russia‘s government has proposed a law suggesting capital Mandates for ICO organizers. It this approves it would bring in a capital requirement for initial coin offering organizers. The previous week, the proposal released by Russia’s Ministry of Communications and Mass Media ( Minkomsvyaz)look for to implement a series of requirements prior to any kind of ICO activity to officially endorsed within the country.
The primary constituent of the proposal is that all ICO organizers should be registered as a legal entity with the Russian territory along with bank accounts from licensed financial institutions. In addition to it, they must have about 100 million rubles that means 1.73 million dollars worth of authorized capital.
Ministry of Communication proposes that ICO could be held only when the companies also possess a state license to produce cryptographically enhanced software. It also possesses a credible bank account dedicated to token revenue. It should also hold a list of all rules for digital toke issuer. It should also not waste revenue on anything the issuer wants.
As per the document, ICO license will be approved by Minkomsvyaz for a period of about five years. The document also specifies a digital token as an ‘encrypted record in a distributed ledger technology system, i.e. DLT. It officially states the token’s owner’s right to get hold of the initial price of the token from the token’s issuer by means of a DLT system’.
Russia’s Ministry of Communications and Mass Media also want the issuer to present audited ICO rules comprising the issuer’s compulsion to guarantee the release of digital coins on the basis of an irreversible public offer.
Along with that the issuance of digital tokens should be completed in Russian rubles all the way through non-cash settlements. In addition to it, the company that issues the tokens can only direct its earnings to uphold obligations to acquire back those tokens at a nominal value.
The checking by the Ministry of Communication will be carried out three times in a year exclusive of any emergency actions structured by a government. The ministry will monitor if projects act as per rules above. It will also have powers to suspend operations of such projects where any kind of problem exists.
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