Russia bans cryptocurrencies payments and also limited any ICO investment to about $160 for any non-accredited investors. This is a part of the cryptocurrencies regulations in Russia, a document that has been submitted to the Lower House of the Russian Parliament on March 20th. The legal document has arrived in the decisional house of the Russian Parliament and could be implemented since the summer.
Despite the pioneering and innovative nature of the document, the implemented regulations are striking. Accordingly, both cryptocurrency and tokens can only be used in Russia as a deposit of value or financial assets but not as a payment method.
Technically speaking, cryptocurrencies payments would not be allowed as they are transactions in exchange for goods or services. However, nothing would prevent exchanging cryptos to fiat currencies via legal systems and if the payment is made in legal tender.
The Russian cryptocurrencies regulations also aim ICOs
The document is differentiating between accredited and non-accredited investors. Accordingly, non-accredited investors will be limited to only a $160 investment in an ICO, this being definitely a very low investment for such projects.
The bill also establishes the basic data a white paper should contain. Thus, the white paper must show the information on the issuer and the shareholders, structure of the issuer’s governing bodies, the purpose of the ICO, and a full business plan.
The new Russian cryptocurrencies regulations target exchanges, as well
The document also focuses on exchange houses, establishing that they can only be legal if they obtain licenses from brokers, dealers, or securities management companies. Alternatively, they must comply with the requirements established by the Russian federal law regarding the organized markets.
Also, the Russian cryptocurrencies regulations document proposes legal definitions of cryptocurrency mining, cryptocurrencies payments, and smart contract. Thus, it defines cryptos as “goods in an electronic format created using cryptographic methods” and declares that cryptocurrency and tokens are considered digital financial assets.