Central Bank of Russia Released ICO Bill

According to regulator's bill, ICO-projects can attract no more than 200 million rubles within a calendar year
26 January 2018   1127

Regulator proposes to equate the crypto-currencies to the property, and the mining - to entrepreneurial activity.

Unlike the ministry, the Central Bank plans to prohibit the purchase of tokens, if they are not used by companies to attract financing.

The execution of civil law transactions with purchased tokens, with the exception of transactions aimed at exercising the rights provided by the tokens in accordance with the public offer for the release of tokens, including transactions for the sale of the tokens issued to the issuer, is not allowed.
 

Central Bank ICO Bill

In addition, the Central Bank proposes to introduce an expanded list of information that the organizers of the ICO should provide to investors.

It also includes reports of facts that may affect the investor's profit, the price of the token or the procedure for determining it, and information about the prohibition of transactions with purchased tokens.

These are the keynotes of the bill:

  • Investments of retail investors in one ICO project during the calendar year are limited to 50,000 rubles.
  • The total amount of investments from one retail investor to different ICO-projects can not exceed 500 000 rubles.
  • ICO-projects can attract no more than 200 million rubles within a calendar year.
  • ICO should be conducted on specialized platforms registered as a legal entity with a capital of at least 5 million rubles.

Foreign legal entities, legal entities deprived of licenses for violations, and individuals cannot own 10% or more of shares of investment platform.

The bill also states that the sites are required to provide information on contracts with platform participants at the request of the court and law enforcement agencies.

The organizer of ICO can indicate the minimum and maximum amount of funds raised. If the minimum amount is not reached - the funds will be returned to investors, if the maximum is reached - the attraction should stop.

The regulator also plans to deal with keeping a register of operators of investment platforms, monitoring the implementation of laws and site inspections.

CEO AriseBank Admitted to Fraud

Now Jared Rice faces up to 120 years in prison, however, confession may reduce this period to 20 years
22 March 2019   107

AriseBank CEO Jared Rice confessed to deceiving investors for $ 4.2 million in cryptocurrency. The plea agreement filed in the federal court of Dallas, Dallas News кузщкеы.

According to the document, Rice promised investors a "guaranteed return" of up to 20% of the invested funds, as well as opening bank accounts insured by the Federal Deposit Insurance Corporation and Visa-related debit and credit cards, although he did not have agreements with these companies.

The $ 4.2 million received from the ICO Rice spent on his girlfriend, lawyers, as well as on hotels, food and trips by Uber.

It is noteworthy that Jared Rice’s plea for cryptocurrency fraud was one of the first of its kind in the United States.

Now Rice faces up to 120 years in prison. However, confession may reduce this period to 20 years. Also, the organizer of the scheme will have to pay damages to deceived investors.

The final verdict on the case will be delivered on July 11.

Jared Rice was arrested in November 2018 on charges of fraud with unregistered securities and fraud using electronic means of communication. In December, the US Securities and Exchange Commission (SEC) obliged him and Stanley Ford, co-founder of AriseBank, to pay about $ 2.7 million as part of the settlement of the charges.