Russia is good to go to test the Initial Coin Offering (ICO) technology at the regulatory platform of its central bank. This platform was launch in April 2018, which was particularly intended to test the unregulated techs.
According to the declaration, the financial market infrastructure of Russia, National Settlement Depository (NSD) alongside the Sberbank CIB which is the corporate and investment banking branch of Russia’s state-owned bank will pilot the ICO technology.
Before the end of this summer, it is expected that the first digital asset transaction will be conducted.
NSD will record the tokens and do the settlements identified with the issue and dissemination of the tokens. Likewise, it will be the custodian of the transaction by keeping and registering the assets. Though Sberbank CIB will coordinate the issuance of these tokens and play the part of an anchor investor in tokens issued.
Apparently, the Russian crypto market has incredible interest for ICOs as expressed by the Senior Vice President of Sberbank:
“Sberbank CIB considers the Russian ICO market to be very promising. Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect; we will be one of the drivers to institutionalize and popularize this type of transaction.”
Once the blockchain transactions are assessed and feedback has been collected regarding the transaction mechanism, the central bank will be able to bring more transparent ICOs in the Russian market, this would further help in making such transactions mainstream while boosting the interests of traditional investors.
As per the Prime Minister of Russia, Dmitry Medvedev, the lawmakers are taking a shot at legal terms like digital money and digital rights rather than tokens and digital currencies as expressed by him.
“We need to consolidate the basic provisions and translate them into the language of the law. Therefore, instead of common slang expressions such as “cryptocurrencies” and “tokens”, lawmakers are developing the more strict legal concepts of “digital money” and “digital rights.”
In March, a bill has been drafted by the Russian Parliament that expressed digital tokens are to be considered assets rather than money.
As of late, Russian State Duma endorsed the first reading of three bills on crypto that has three weeks for recommending amendments before it gets settled.
According to the bill, digital currencies and tokens will be taken as digital financial assets as opposed to being a legal tender. Supposedly, the crypto purchase and sales should be possible however crypto exchanges that will go about as custodians.
The bill additionally depicts the procedure of ICO where the entities need to unveil finish data. Additionally, crypto mining will be regulated and miners would need to register themselves with Federal Tax Service and pay taxes.
Another imperative point is that lone those tokens that have noteworthy economic value will be considered as Digital Rights.