Russian President Signed Off On Regulation Of ICOs And Cryptocurrency Mining

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Russian President Signed Off On Regulation Of ICOs And Cryptocurrency Mining

© Karen Blier / AFP

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.

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  • VGA

    Sad day for the drug and weapon dealers out there.

    • sam_koll

      Sad day for ALL those that don’t take the mark of the beast in their hand or forehead

      • IH8Lies

        Interesting point.

      • Jens Holm

        Mnay hardly has a forehead.

        • sam_koll

          As a Christian I should have written…
          ” Sad day for ALL those that take the mark of the beast in their hand or forehead”
          Who/ what is Mnay?

          • Jens Holm

            Its my grancousin. She is only 1,35 and very skinny.

    • Jens Holm

      Very naive its only drug and weapon. Its all the way around in the same way a lot of illegal transactions goes through a bank.

  • goingbrokes

    Cryptocurrencies – not a good idea. It is the final step in converting money, which is itself just a token, to essentially nothing. All is well when systems work well and there is no disturbance. If there is a war and something digital wipes it all out, ah well…

    • Jens Holm

      But they do exist. I dont want unwanted children to be born, but then I have to choose contraception(which is fine for me) but also have to accept abortion, which i certainly not prefare.

      So I work har to make all use contraseption a much as I can.

  • Igor Dano

    Very good day.
    For gold.

  • Jens Holm

    Very difficult. Many others already have systems trying to habdle this growing part of the economy. Good initiative.

    Those parts has to be taxed too in a fair way.