Russian President Vladimir Putin has mandated new regulations around cryptocurrencies, including registration requirements for miners and the application of securities laws to initial coin offerings (ICOs) to be implemented by July 2018.
The Kremlin decreed on October 21 to mandate new legal structures around cryptocurrency. Russia intends to apply rules for initial public offerings to the ICO use case, through which cryptographic tokens are sold to bootstrap a new blockchain network.
The orders also feature establishing a plan to use cryptocurrencies to create a “single payment space” within the Eurasian Economic Union.
Putin also ordered that the government to develop a system for regulating cryptocurrency miners by making them register and pay taxes on their income.
In addition, Russian government is to legally define the status of various terms related to what the Kremlin describes as “digital technology.” These include ‘distributed ledger technology’ alongside ‘cryptocurrency,’ ‘token’ and ‘smart contract.’
The Russian government also wants to throw its weight behind efforts by startups to develop new financial services around the tech. One of the decrees mandates the creation of a so-called regulatory “sandbox,” or a framework within which companies can test products in limited settings. Some countries, including the UK, have set up finance-oriented sandboxes that have attracted a number of blockchain-focused companies to date.