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New ICO draft bill in Russia, this time from Central Bank, tells who and who cannot lead ICOs

25 January 2018 21:00, UTC

ICOs can be led only by people with higher education, tells Point 3 of Paragraph 4 of Chapter 2 of the new Russian bill offered by the Central Bank, the actions of which are usually endorsed by the influential Russian President. Neighboring paragraphs describe other entities and persons who cannot lead or work in initial coin offerings, including those who were previously convicted for crimes and legal entities registered in countries or territories which do not require to publish information which the Finance Ministry in Russia needs to know. This latter notion might considerably infuriate some people desiring more free markets in Russia and more foreign investment.

The authors of the new draft legislative act from the Russian Central Bank clearly had the current disastrous situation with initial coin offerings in mind while outlining detailed parameters on who can and who cannnot participate and head the initial coin offerings, which are called “investment platforms”, while the law itself is called “On Alternate Ways of Investment Attraction (Crowdfunding)”. As creator of Ethereum Vitalik Buterin once said, 90% of ICOs may fall due to their current nature, and now we can already imagine how the Russian ICO market will change if the law is implemented.

This and the fact that cryptocurrency is never mentioned in the 29-page document leads Bitnewstoday to conclude that the law is dedicated specifically for ICOs regulation.