Economies around the world are figuring out a way to regulate Cryptocurrency and its crowdfunding industry (ICOs). Doing their bid the Russian lawmakers are considering a draft law that suggests setting a maximum annual limit of $9,000 for the participants of any crypto and blockchain related crowdfunding efforts.
The aforementioned bill is one of three pieces of legislation aimed at regulating the cryptocurrency industry in Russia. The first reading of the proposed bills was held in May of this year by the Russian Duma. The first reading did not have to define a limit for individuals participating in ICOs, it just suggested that such a limit should be introduced by the Central Bank of the Russian Federation (CBR).
The amendments of the draft law have now included a cap on the total amount private citizens can use to invest in crowdfunding endeavors. The maximum amount is set to be at 600,000 Rubles ($9,000) per annum. Furthermore, individual investors cannot exceed 100,000 Rubles ($1,500) per crowdfunding project.
To invest any amount above the 600,000 Rubles, the participants will need a mandatory approval of Russia’s Federal Financial Monitoring Service: Rosfinmonitoring. A regulatory authority created by President Putin in 2001, aimed at collecting and analyzing financial transactions in order to combat local and international illegal activities, such as money laundering, terrorist financing, narcotics funding among others.
Exemptions to the Limits
The draft bill further notes that professional investors are exempted from any limits. However, any known professional investors will have to meet certain criteria outlined by the respective claws of the land. The Russian laws clarify, how one can qualify to become such an investor. One such requirement is at least 2 years experience working in Russia’s securities industry.
The draft bill will be read again and voted on by the Russian Parliament in January 2019.