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Different countries are starting to implement regulations on cryptocurrencies and blockchain technology. At the same time, one of the most controversial points to regulate are Initial Coin Offerings. There have been several scams and other fraudulent activities around this new crowdfunding method. Now, the Russian Ministry of Telecom and Mass Communications, prepared guidelines for Initial Coin Offerings (ICOs).

Initial Coin Offerings Regulations

Russia is trying to regulate the Initial Coin Offering market. It is clear that there should be regulations around the activities involving cryptocurrencies and ICOs. But it is important to see how Russia is planning to increase the participation of its national currency, the ruble, in the ICO process. Russia Bitcoin Regulation

According to Kommersant, a local news source, there will be important points to analyse about the new ICO guidelines. Apparently, ICO organizers would be accredited to operate for just 5 years and the accreditation will be controlled by the Ministry of Telecom and Mass Communications.

Furthermore, the Initial Coin Offerings will have to be registered in the Russian Federation and the registered capital must be of at least 100 million rubles (1.7 million USD). Other important and mandatory rules will be to have a bank account that would reflect the money raised during the ICO, and a license that would allow the ICO team to develop, produce and distribute cryptographic commodities.

Another important point that is related with Russia’s currency is that the issuing of digital tokens must be carried out using rubles.

As the document released by the Ministry says, digital tokens would be considered as entries in “distributed information systems” that have been created using “cryptographic algorithms.”

According to some experts, this would not help ICOs to settle in the country. As of today, no ICO has been held in the Russian Federation.

ICO Regulations Belarus

The state of Belarus, a Russian neighbouring country, has decided to implement cryptocurrency and ICO regulations. But the way Belarus did it is quite different to how Russia is planning to do it.

Belarus has taken a very permissive stance towards cryptocurrencies and ICOs. Other crypto-related activities have also been legalized in the country. Cryptocurrency and blockchain companies have tax discounts for the next 5 years and a preferred treatment.

This is allowing enterprises to settle in the country. The market is being very competitive at the moment. Europe has different crypto hubs that allow enterprises to expand their crypto-related businesses. Switzerland, and Estonia are two of these countries.

Russia is trying to benefit form ICOs and the money raised by them, but it would be hard to compete if hard regulations are implemented in the Eastern European country.

Join the conversation over at Telegram (https://t.me/coinstaker)

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