Expert: Russian economy loses 20 bln rbl in 2017 on lack of ICO laws

MOSCOW, Dec 27 (PRIME) -- The Russian economy has lost 20 billion rubles in 2017 because of a lack of the initial coin offering (ICO) regulation, the Association of Blockchain Technology and Products’ Developers and Users to Promote Digital Economy (RACIB) said on Wednesday in a note to its bill on the ICO.

“The data are based on parameters of Russian residents’ ICOs, which were held in foreign jurisdictions in 2017,” the association said.

The federal budget failed to receive 3–4 billion rubles in tax revenues since the beginning of 2017.

In 2017, the country saw 1,000 projects planning to attract investments via ICO, but 25% of initiatives turned defunct prior to the offering due to internal corporate problems and unfeasibility.

“Only 3% of projects succeeded in implementing the project as it was announced at an ICO, and 67% did not receive the lowest threshold of the required volume of investments, and 5% did get the money at an ICO, but then mothballed the idea,” RACIB said.

The association explained the small ratio of successful ICOs by poor quality of a project’s team forming.

(57.7343 rubles – U.S. $1)

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