In the past year, a rigorous set of laws has had a growing voice which may not be particularly be in favor of the ICO sector. Governments have been actively taking measures to eliminate the menace of ICO scams and shady financial activities. The latest government to join the battle is the Russian Federation.
According to a Russian Crypto media outlet, Forklog, a group of members of Russian parliaments (MP) introduced a draft bill on December 11 to enable the government to take down websites having potential financial fraud, including disreputable ICOs.
The draft bill offers more authority to both central and state banks. It indicates various methods through which the nation’s central banking authority will be able to block websites. Websites can be immediately taken down if they do not adhere to the legislation.
The proposal aims to target mainly the websites with fake banking URLs or offer unethical financial services. Including financial pyramids, which are most frequently used in Fraudulent ICOs.
The group of MPs working on the operation is led by Vyacheslav Volodin who is the chairman of the lower house of the Russian Parliament , the Duma. Even the Russian President Vladimir Putin, contributed to the building of the bill.
According to Forklog, Alexander Zhuravlev who is a noted Blockchain author, believes that the government is seriously examining the means to bring crypto under regulatory purview, mainly ICOs. He stated,
“The central bank has been struggling to clean the market of pseudo-credit organizations and financial pyramids. If we apply this to future ICO projects that fail to comply with their obligations, then the central bank will also be entitled to request the blocking of their websites.”
Despite the clear intent of the bill, it does not mention anything related to mining or cryptocurrencies. Nevertheless, top government officials remain satisfied with the bill. It is a good sign to have active government involvement for clearing the malpractice in the market. Given the crypto market’s downfall, there is an opportunity to build solid foundation blocks on which the crypto can rise to new heights.