Russia’s Ministry of Communications and Mass Media (Minkomsvyaz) has published a document establishing the licensing rules for ICO projects, Forklog news outlet reported Monday, Feb. 12.
Some of the key requirements presented to digital token issuers require nominal capital of about 100 mln rubles - approximately equal to $1.7 mln - and a license for the development, production, and issuance of tokens. Additionally, token issuers are obligated to possess a specially licensed bank account.
According to the document, the ICO license will be granted by Minkomsvyaz for a duration of 5 years.
In the document Minkomsvyaz defines a digital token as an “encrypted record in a distributed ledger technology (DLT) system which certifies the token’s owner’s right to obtain the initial price of the token from the token’s issuer via a DLT system.”
Minkomsvyaz also requires the issuers to provide audited ICO rules including the issuer’s obligations to guarantee the redemption of digital coins on the basis of an irrevocable public offer.
The issuance of digital tokens must be completed in Russian rubles via a non-cash settlement. Furthermore, the company that issues the tokens can only direct its profits to maintain obligations to buy back those tokens at a nominal price.
Previously on Jan. 25, Russia’s Ministry of Finance introduced a draft of the Digital Assets Regulation Bill which defines and establishes a regulatory system for cryptocurrencies, ICOs, as well mining and trading activities.