Russian Lawmakers have revised another bill related to the regulation of the crypto industry. According to the latest version, ordinary Russians will be allowed to invest around $9,000 each year in Initial Coin Offerings (ICO) and other crypto projects.
The bill is part of three pieces of legislation aimed at regulating the crypto industry. The legislation pieces were adopted on first reading by the State Duma in May. The initial draft approved by the lower house of the Russian Parliament had no limits regarding investments. It only included sub-statutory acts issued by the Central Bank of the Russian Federation. (CBR)
According to the revised draft law, private individuals will be permitted to invest up to 600,000 Russian rubles (less than $9,000) every year, through crowdfunding platforms, and a maximum of 100,000 (about $1,500) each project.
Investments exceeding 600,000 rubles will be subject to mandatory inspection by the country’s financial monitor, Rosfinmonitoring, to prevent money laundering.
The new draft law limits the access of ordinary citizens to initial coin offerings (ICO). The authorities in Moscow intend to protect Russians from the risk related to the industry. The CBR has warned that investing through crowdfunding platform can result in the loss of all invested funds. The limits, however, do not apply to social and charitable crowdfunding projects.
Furthermore, no restrictions will be applied to professional investors in their participation in crowdfunding projects. Private individuals can be considered as “qualified investors” if they meet certain criteria specified in the federal law “On the securities market.”
To qualify to the level of professional investor, private investors must control assets worth at least 6 million rubles (about $90,000) and confirm that they have worked in the securities industry for at least two years.
According to one of the authors, Anatoly Aksakov who is the chairman of the Financial Markets Committee, the revamped bill is likely to be voted on second reading in Duma in January.