Russia Discussing Crypto Currency Regulation

PUP – March 6, 2018:  The work in the market of crypto-currencies is associated with certain risks, and therefore the state regulation of this sphere is necessary, the chairman of the State Duma Committee for the Financial Market Anatoly Aksakov opened the discussion. According to the instruction of President Vladimir Putin , the relevant laws should be adopted by July 1, 2018.

Two draft laws on the regulation of blockchain technology have been developed: the Central Bank has prepared a draft law on alternative ways of attracting investment (crowdfunding), the Ministry of Finance – On Digital Financial Assets. The documents establish the legal basis for the primary release of tokens (ICO) in Russia and regulate the turnover of the crypto currency, the implementation of the mining and ICO. And although the main positions on the regulation of digital money have already been agreed upon, there remains a key contradiction between the Bank of Russia and the Ministry of Finance on exchange operations with crypto-currencies, Aksakov said. “The Central Bank is against the legalization of this type of digital currency, since in this case, citizens can start actively investing in crypto-tools, not taking into account possible risks,” the deputy explained.

However, in addition to interdepartmental contradictions, there are comments on both documents from the Expert Council under the Youth Parliament under the State Duma. In particular, according to the draft law of the Central Bank, only commercial organizations and individual entrepreneurs can attract investments in crowdfunding. Because of this, non-profit organizations will not be able to attract investments, said Venera Shaydullina, senior lecturer of the Department for Legal Regulation of Economic Activities of the Financial University under the Government of the Russian Federation. Foreign start-ups that have registered a branch on the territory of Russia will not be able to participate in the process, since such representations, according to the Civil Code, are not legal entities. (BattleForWorld: Non-profit organizations like NGOs, the West would use crypto-currency to fund civil disturbances in countries. And Russia is drafting regulation to prevent that.)

As for the draft of the Ministry of Finance, the document establishes that owners of digital financial assets have the right to make transactions for the exchange of assets of one type to another only through the operator of the exchange of digital financial assets. “This rule prohibits barter transactions between legal entities and individuals, the subject of which is the exchange of crypto-currencies. It turns out that the initiative defines a token and a crypto currency as securities, “- explained the senior instructor of the Department of Legal Regulation of Economic Activity of the Finance University under the Government of the Russian Federation Nina Efimova. Such a norm, according to the expert, can lead to an outflow of investment from Russia, since most countries (the same Switzerland, Australia, Japan, etc.) do not prohibit such transactions. Therefore, experts propose to consolidate the conduct of barter transactions on the basis of contracts on civil legislation. (BattleForWorld: The “outflow” loophole is going to be exploited to the maximum in the unregulated Western world of crypto-currency.)

The future parliamentarians pay special attention to the mechanisms of state support. In their opinion, it is necessary to subsidize the participation of such projects at international exhibitions, placement on specialized online resources, the installation of international sites for crypto-investors. “We need to think about the legal mechanisms for the acquisition and sale of national currency (a conventional cryptor, validated by real ruble reserves with zero volatility relative to the exchange rate of the national currency as other property -” PG “comment),” Mostovshchikov added.

Bitcoin – The Grand Deception


Wu-Tang Clan To Launch Own Cryptocurrency To Support Music, Brand

YAHOO – March 7, 2018:  The son of a late member of the Wu-Tang Clan will issue his own ICO called “Dirty Coin”, to support music projects and other ventures.

The Hip Hop artist, Young Dirty Bastard, the son of late rapper and producer Ol’ Dirty Bastard of the Wu-Tang Clan, is launching his own cryptocurrency in an Initial Coin Offering (ICO) in an announcement interview with Yahoo Finance Tuesday, March 6.

According to the article, celebrities rushing to promote initial coin offerings (ICOs) has only added to the image that ICOs as high-risk, fly-by-night offerings. And the Securities Exchange Commission has warned the public multiple times about the risks of investing in an ICO, in which a company sells digital tokens for later use in an ecosystem that usually is not existing yet. But investors does not seem to care, and have largely ignored the warnings. In December, fundraising through ICOs hit an all-time high for a single month. CoinDesk now estimates the cumulative total at nearly $9 billion.


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