Ministry of Finance of the Russian Federation Can Forbid ICO Token Sale on the Secondary Market

Published on 08 Dec. 2017
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Ministry of Finance of the RF plans to forbid ICO token owners to sell coins to anyone except their issuers. 

The suggestion of the Ministry of Finance to restrain ICO token circulation has been voiced by the vice Aleksey Moiseev. As he said:

Virtually, we regulate ICO as a form of crowdfunding. Meaning that people, taking part in ICO, can pay in any currency, even in cryptocurrency, but the circulation of these tokens will be restricted no matter of the format, except as the transactions for issuers. 

This is a step with which the Ministry plans to protect the investors’ interests. Comparing tokens to the digital securities, Moiseev explains how the right protection is going to work:

If a person has bought tokens but considers herself/himself deceived, he or she will be able to address the court with the printout, stamp, and signature, the same way it works with the digital securities. 

In his interview with TASS, vice-minister noted that the cryptocurrency bill, on which the government is working under the president’s instruction, will not include the points about the control of the self-regulated organization over the digital currency. The mentioned bill will be introduced as soon as December since both Central Bank and the appropriate Duma committee are co-working over it intensively.  

Except for this bill draft, the government is working on the amendments to the Criminal Code, according to which the criminal liability may be initiated for organizing the cryptocurrency payments. 

Cryptocurrency Regulation in Russia

According to the RF legislation, the status of cryptocurrencies is not regulated at the moment. There is no clear position on the state of the digital technologies that are implemented in the financial sphere, as well as no definition for such notions as the technology of distributed registers, digital LC, token, smart contract, etc. 

On behalf of the president of the RF, voiced at the October session, the Ministry, together with the Central bank, works on implementation of the program “Digital Economics.” It presupposes some changes in the legislative system to regulate public fundraising via the ICO tokens, similar to the primary regulation of the digital securities. 

Earlier, Nikolai Nikiforov, the RF Minister for Communications and the Media, said that, in his opinion, Bitcoin would not be legalized on the Russian territory.  

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