Topic: [2017-10-25] Putin Mandates Crypto and ICO Regulation Be Finalized by July 2018 (Read 3273 times)

Smart regulation is exactly what ICOs need. This does not mean banning or limiting them as long as they follow the laws and guarantee somehow that their project is not a scam and they will return money in case they don't deliver the product which they promised. Regulation is good for financial security of investors. The government will probably come out with some kind of similar regulation as they have for star-up projects.

I don't know but I feel worried that it will kill all the campaigns here in btctalk until nothing is left. There are so many upcoming regulations on ICO in different countries now and it is obvious that upcoming altcoin projects will be affected by this.

“we will not allow the use of cryptocurrency as a money substitute.”
-Well, they might still change their regulatory policies. What's the use of allowing cryptocurrency on their country without even allowing then to actually use it's function, this should be well explained. Will they also allow trading exchanges facilities on Russia?, Welp this is going to be critical.

Now, that we finally have the words of President Putin, e are hoping that next year they would be following their own schedule on getting the regulatory framework for the cryptocurrency and the issuing of ICOs. I am sure that Russia can be a big market for Bitcoin as evidenced by the fact that there are so many ICO introductions whose development teams are having Russian surnames.

I believe that it is actually Russians who need the adoption of Bitcoin and cryptocurrency rather than the other way around. The coming explosion of cryptocurrency (as well as mining, of course) in Russia can be helping its economy and its people directly. Putin and its government will have many things to thank cryptocurrency for in the coming years.

Now, we are assuming here that this announcement can be the final one and that the bureaucracy below Putin can be working hard to make these plans come true. They actually don't owe it to anyone but to their citizens.

Putin and his men: Please no more flip flops.

Russia has never been credible when it comes to crypto in general. For years they have been saying to do this or that, while they haven't actually done anything. Another thing is that they seem to be in favor of crypto one day, and suddenly change their perspective negatively the day after that -- nothing they say hold value. Not sure what makes them act like this, but it's safe to say that there aren't that many people left who actually take their words for granted, and rightfully so. If you behave like a clown for years now, people will start to look at you like you're a clown, it's that simple....

They set the date, but we already know how they do love to delay with their promissings. Firstly they were telling about spring of 2017, then autum and not the talk is about of the summer of 2018. Well, let's see.

Everything that is touched by Putin and his servants usually gets captured so nobody else can use it in Russia.

Russia’s president Vladimir Putin has issued orders pertaining to the regulation of cryptocurrencies, initial coin offerings (ICO), and cryptocurrency mining. He wants changes made to the Russian legislation to regulate cryptocurrencies and tokens. Mining operations will also be registered and taxed. The prime minister and the central bank governor will be responsible for completing the orders by July next year.

Russia’s president Vladimir Putin has officially issued five orders concerning the use of digital technologies in the country’s financial sector, according to the Kremlin’s website. He put the prime minister, Dmitry Medvedev, and the central bank governor, Elvira Nabiullina, in charge of completing these orders. Three of them are directly related to cryptocurrencies and ICOs, to be completed by July 1, 2018.

The first order instructs the government to work with the central bank to “ensure that changes are made to the legislation of the Russian Federation” to determine the status of digital technologies including cryptocurrency, token, and smart contract. This is to be “based on the obligation of the ruble as the only legal tender in the Russian Federation,” the order describes.

Prior to Putin’s orders, the government has already been active in discussing how to treat cryptocurrencies. “The use of cryptocurrency as a monetary surrogate is actively proposed for the calculation of goods and services,” Nabiullina was quoted by Tass last month. However, she added, “we will not allow the use of cryptocurrency as a money substitute.”

Deputy Finance Minister Alexei Moiseev, on the other hand, has proposed regulating cryptocurrencies including bitcoin as financial assets.

The second order mandates the government and the central bank to change legislation to establish the requirements for organizations engaged in cryptocurrency mining. This includes, according to the order:
Interest in mining has grown substantially in Russia. Google research shows that searches for mining related terms in the country were up 560% in the first half of 2017. Meanwhile, Russian regions such as Kaliningrad and Leningrad are trying to attract miners. The governor of the Leningrad region recently invited cryptocurrency miners to set up mining farms in the region’s upcoming technopark.

Early this month, the finance ministry proposed registering cryptocurrency miners and licensing crypto exchanges. A State Duma Deputy has also separately proposed to officially legalize cryptocurrency mining in order to tax miners.

The third order directs the government and the central bank to change legislation for the regulation of ICOs.

Putin Mandates Cryptocurrency and ICO Regulation Be Finalized by July 2018A working group at the State Duma headed by Elina Sidorenko has already been working on ICO regulatory proposals prior to Putin’s orders. Additionally, the Russian Association of Blockchain and Cryptocurrency (RABIK) is separately drafting proposals to legalize ICOs. There was also a proposal to create a registry for Russian companies planning token sales.

However, concerns over regulations obstructing ICOs prompted First Deputy Prime Minister Igor Shuvalov to promise not to kill such innovations last week.

Other than the three aforementioned orders, Putin has ordered the government and the central bank to submit two proposals. The first is on creating a regulatory “sandbox” for financial technologies (fintech), to be completed by December this year. The second proposal is for the formation of a “single payment space” using blockchain technology, to be completed by March 20 of next year.

Meanwhile, the government is also working on Russia’s national cryptocurrency, the cryptoruble.

What do you think of Putin’s orders? Will they help cryptocurrency flourish in Russia?
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