Report: Russian cbank says ICO should get regulated like IPO

MOSCOW, Nov 14 (PRIME) -- An initial coin offering (ICO) should be regulated like an initial public offering (IPO), perhaps, in a facilitated mode, Russian Central Bank’s First Deputy Chairperson Olga Skorobogatova said on Tuesday in a broadcast of the Rossiya 24 television channel.

“An explosive growth of ICOs is actually tied to two reasons. First, a great deal of startups and technological companies is emerging, and they need to find money to invest in projects that as they expect will pay back quickly,” Skorobogatova said.

Second, this mechanism actively involves cryptocurrencies as a tool to attract investments.

“We think ICO should be regulated by analogy with an IPO; it may have a facilitated option. It’s truly the topic we should discuss with colleagues from the Finance Ministry and other authorities,” the official said.

For companies with startups at the origin and absence of five to 10 years of history, it is difficult to apply absolutely standard mechanisms, like loans or investments, she said. “I think a reasonable compromise is possible here,” Skorobogatova said.

Cryptocurrency mining as a business should be registered and taxed. Mining is not only the activity related to cryptocurrencies, but the term is also used in the implementation of blockchain and is validation of a transaction, which is presented as blocks in this technology, Skorobogatova also said.

“We mean legal entities and businessmen who’d like to deal with this activity,” she said.

A law on cryptocurrency regulation should be adopted by the State Duma, the parliament’s lower house, in January–June 2018, according to the president’s order.

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