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Russia introduces new rules for cryptocurrencies and ICOs

Russian President Vladimir Putin has instructed to introduce new rules regarding cryptocurrencies, including the requirements for registration of miners and the application of securities laws to initial coin offerings (ICOs).

24.Oct.17 11:46 AM
By Daria Zaytseva


Russia introduces new rules for cryptocurrencies and ICOs

The Kremlin published five orders from Putin over the weekend, presenting, perhaps, the most direct step to date by the Russian government to monitor the actions around the technology. Not only do the orders from Putin establish new legal structures around cryptocurrency in Russia, they are ambitiously setting a plan for using technology to create a "single payment space" within the framework of the Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia as members.

It is noteworthy that Russia intends to apply the rules for initial public offerings in case of using ICO, through which cryptographic tokens are sold for downloading a new blockchain network. Putin also ordered that the government, under Prime Minister Dmitry Medvedev, develop a system for cryptocurrency miners to register and pay taxes on their income.

The Russian government also wants to throw its weight behind efforts by startups to develop new financial services around the technology.

One of the decrees provides for the creation of a so-called "sandbox" for regulation, or a framework within which companies can test products under limited conditions. In some countries, including the UK, financial-oriented sandboxes have been established, which today attract a number of companies focused on blockchain.

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