Saturday, May 28, 2022

Russia Considers Crypto Detective Agency to Fight Rapid ICO Growth

Russia Considers Crypto Detective Agency to Fight Rapid ICO Growth

The leader of Russia’s Internet Development Institute (IRI) proposed creating a specialized cryptocurrency “detective agency” to collect information on Russian companies looking to launch an ICO, and keeping that information in a special register. The proposal came during a congressional council meeting this week, which included regulators and top domestic banks.

Also read: Australian Gov’t Ends Infamous Bitcoin Tax With New Legislation

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Russia MoscowIt’s been a wild week for cryptocurrency investors and fans of decentralized solutions in Russia. This week included Russian president Vladimir Putin greenlighting the minting of a “CryptoRuble”, and the recent announcement that a full ban will be placed on mining other cryptocurrencies in the near future.

During the meetings, the issue of legalizing cryptocurrency arose — but not without discussion of the future of Initial Coin Offerings (ICOs) and their place in Russia going forward.

A Detective Agency for ICOs?

Alexi Fyodorov, the current president of the Internet Development Institute (IRI) recommended creating a kind of crypto detective agency to monitor, and put requirements on, any Russian firms that wish to conduct an ICO.

“Our agency will be able to extract information about their beneficiaries and their real state of affairs. Is this a startup or an attempt to solve the company’s current problems with the help of the ICO,” he asked, before detailing the need for this agency.”

“Our task is to protect investors. When a company that has attracted funds from a large number of people fails, its investors will seek protection from the state’,” he added.

Conflicting Messages in Russia

Despite this tough public stance on ICOs, not all members of the Russian cryptocurrency community believe this is the right approach to handling the ever-growing list of companies trying to exchange tokens for cash and a piece the future revenues of the company.

Dmitry Marinichev, one of the key figures behind Russia’s $100 million ICO for a Bitcoin mining farm, does not believe the that a crypto detective agency is the right solution.

“Mechanisms for controlling ICO are needed … But the registers are ineffective. If someone needs to collect data, let it do it. But to force a company to register on the register is pointless.”

As the global crypto economy continues to develop, many countries are beginning to establish their positions on digital currencies and their place going forward.

Recent Russian rumors such as the mining ban and a specialist investigative agency might make some people nervous. Like China, the country has wavered between crackdowns and permissiveness throughout Bitcoin’s history.

Do you think Russia’s “detective agency” will have a major impact on companies looking to conduct an ICO?

Images via Pixabay

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