National Bank of Republic of Belarus (NBRB) has declared that stringent measures would be implemented soon. These measures are meant for the investors interested in ICOs. Likewise, dev.by has reported on 8th May that crytocurrency exchanges are also planning to roll out regulations.
The regulators restrict investment in ICOs. The restriction is meant for those who are investors with considerable qualification. The regulation is primarily directed to curb the possibility of the common investors from making losses.
Two of the four qualification criteria need to be fulfilled by the investors. An investor is qualified if pertinent educational achievement and work experience are provided. Absence of these requirements is compensated by the fulfilment of financial criteria.
As per the reports by dev.by, a local media company, financial requirement is “very high” for a qualified investor. Either the minimum level of annual income of a potential investor be $20,000 or minimum saving amount be $50,000. It is imperative that both these financial criteria involve securities and fiat currencies. It should also include crypto assets.
The regulatory frameworks involve other factors. Besides having minimum level of total capital amount and annual revenue, other issues are present. The interested investors seeking qualification must have special knowledge. They should also be well-educated and have relevant experience in the working field. The cryptocurrency traders are also about to follow the same norms.
According to sources, “Belarusian crypto exchanges and ICO issuers have no room for error. The investment system in Belarus is at the stage of formation. If any Belarusian ICO project which raised money from the citizens fails, it can become a national scandal. People will lose money. Therefore, at the initial stage of development, we propose to limit ourselves [sic] only to qualified investors.”
The regulators are rigid to set strict qualification criteria and reputational necessities. These serve as gateway for investors willing to invest in ICOs. These requirements include policies involving risk management and anti-money laundering norms. It also involves no debts on payment of budgets and internal control regulations.
Cryptocurrency exchanges and ICOs share a similar category of requirement for advertisements. The advertisements should be explicit enough not to promise guaranteed income. They should rather specify the risks involved in the investment. “International experience” will be taken into account by the future ICO norms. These norms would be flexible to adapt with the fast developing digital currency market. In March, this European nation witnessed the introduction of cryptocurrency norms of accounting.
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