Lawmakers in Russia have revised another cryptocurrency bill as they continue their efforts of regulating the sector. The latest bill revised by the lawmakers touched on ICOs and digital crowdfunding in the country. The latest rule revised shows that ordinary citizens in Russia will be able to invest in ICOs though they are not allowed to spend more than USD 9,000.
Russians allowed to invest USD 1,500 per project
The Russian legislature is currently looking into three bills that would help regulate the cryptocurrency sector and the bill “On attracting investments using investment platforms” is one of them. The bills were adopted during the first reading by the State Mary earlier this year. The lower house of parliament read a similar bill but the limits on investment were not inserted.
The revised law by the lawmakers saw them reach a conclusion where private individuals would be allowed to invest up to 600,000 Russian rubles (less than USD 9,000) on ICOs. They also capped the investment on one project to 100,000 rubles (~USD 1,500). The bill ruled that any investment that surpasses the set limit will be subject to mandatory oversight by the country’s financial watchdog, Rosfinmonitoring and such investments will have to be made by qualified investors or financial institutions,
The new regulations will put a cap on how much Russians can spend in ICOs and how many they can have access to annually. The legislators claimed that these rules are being put in place to ensure the safety of Russians and reduce their risk exposure. The CBR in its statement warned Russians that investing in ICOs might lead to the loss of funds. They, however, pointed out that the limit set for ICOs doesn’t apply to social and charitable crowdfunding initiatives.
Qualified investors wouldn’t be restricted
According to the bill, professional investors in the country would not face any restriction when investing in crowdfunding projects. Ordinary citizens can be regarded as qualified investors as long as they meet certain conditions put in place by the federal law “On the securities market.” One of such conditions that an individual will have to control assets worth at least 6 million rubles (almost USD 90,000) and prove that they can work in the securities industry for a minimum of two years.
It is expected that the revised crowdfunding bill will be voted on second reading come next month. One of the authors of the bill and chairman of the Financial Markets Committee Anatoly Aksakov is confident that it is a very good bill. Prior to the summer vacation, deputies of parliament approved two other drafts – a bill amending the country’s Civil Code to introduce a legal definition of “digital rights” and the main draft pertaining to the regulation of cryptocurrencies, the law “On digital financial assets.”
The bill on regulation of cryptocurrencies has received serious revision which has led to the lawmakers abandoning some key terms such as “cryptocurrency” and “mining.” Bodies representing the crypto sector protested the decision by the parliament and put forward another bill that will grant cryptocurrencies special status. That might not happen as the Deputy Prime Minister Maxim Akimov recently pointed out that regulators in the country are not looking to put forward any more significant amendments to the texts. The lawmakers have also removed some important terms from the crowdfunding law, with words such as “tokens” and “smart contracts” omitted.