On May 22, 2018, the State Duma passed the law “On Digital Financial Assets” in the first reading.

Last week said that you can invest in Briastorm. We also encourage everyone to invest only when you are aware of everything that is happening in the ICO industry and crypto currency. Gradually we will inform you. Let’s start with one interesting bill.

All over the world states regulate the market of crypto-currencies, Russia is not an exception. At the moment there is no law in force in Russia. There are only bills “On Digital Rights”, “On Digital Financial Assets”, “On attracting investments using investment platforms.” All these laws are adopted only in the first reading, and they will take effect only after the third reading.

The text of the bill first appeared in January 2018. You can read it on the website of the Ministry of Finance: https://www.minfin.ru/en/document/?id_4=121810

Critics did not like the law. Particularly outraged was the fact that the consequences of non-compliance were not described. Registration of miners, as individual entrepreneurs, to representatives of the industry sounds doubtful, especially after failed campaign to legalize the activities of freelancers.

After criticism, the law was sent for rewriting to Anatoly Aksakov, who treats crypto-currency unkindly. And then there were three laws “On Digital Rights”, “On Digital Financial Assets”, “On Attracting Investments Using Investment Platforms.”

We outline main things that you need to know about the law “On digital financial assets”:

1) The law creates a new concept of “digital asset”, which includes crypto-currencies and tokens. The property in electronic form will be entered in the register of financial transactions.

2) It will be more difficult to conduct ICO due to bureaucratization of the process. For example, when the law comes into force, companies must sign an agreement with each investor.

3) The limitation on number of purchased tokens for unqualified investors will come into effect. There are no specific figures in the document.

4) Exchange tokens for fiat will be possible only through the operator. To do this, investor needs to go through identification and open the wallet from the same operator. It’s about tokens. At this point there is not a word about crypto currency.

5) Under the bill, miners must pay taxes, but only if they exceed the limit of energy consumption. The limits, by the way, are not established yet.

6) The law has officially defined smart contracts. And here is great news: companies are allowed to use smart contracts when signing an agreement with an investor.

7) But the law provides for the possibility of a paper contract, although it is an optional item.

The Law “On Digital Rights” introduces new concepts of “digital rights” and “digital money” and introduces legal links that arise in the process of circulation of the Crypto-currency.

The law “On attracting investments using investment platforms” overlaps with what we described above. In addition, it affects not only the ICO, but also the usual crowdfunding.

The Russian Association of Crypto-Currency and Block-Border (RACIB) has taken these laws with hostility. In their opinion, there will be no favorable investment climate in the industry after these regulations.

We continue to monitor the situation.