The Moscow Exchange is planning to establish a platform which will enable companies to conduct Initial Coin Offerings (ICOs). The exchange expects to launch the platform before the end of this year. Russia’s largest exchange group’s platform will look to help companies participate in ICOs and also in publishing token sale data.
According to the CEO, Alexander Afanasiev, the exchange is not planning to list tokens, however, it will offer information about the requirements and responsibilities of token issuers. Additionally, they will offer descriptions to different tokens and ICOs to investors. Afanasiev shares, “Right now we’re looking at this from the point of view of fiat currencies, because cryptocurrencies don’t have the status of a legally protected asset. If they obtain that status, we will place them in our system as well.”
The Moscow Exchange is also looking to issue futures contracts for ICOs, if there is adequate demand from investors. Afanasiev says the exchange is currently conducting market research for their products and types of futures people would like. This exchange is the main price discovery center for most Russian financial institutions. It’s very established in the trading of bonds, equities, currencies, commodities and bonds, with a trading volume of more than 1.1 trillion dollars.
What About Regulations?
Laws regulating cryptocurrencies in Russia already received their first reading earlier this year. These laws defined digital currencies and tokens as property. They also have different specifications on how people and firms can interact with blockchain-related technologies.
The plans for the exchange are supported by Sberbank CIB and also by the National Settlement Depository, which is part of the exchange group. The two announced that they will be supporting the country’s first official Initial Coin Offering. The launch of this platform is to take place before the end of 2018.
ICOs are having a very hard time with most countries thinking about banning them. This is because ICOs are hugely unregulated and chances of fraud are high in this sector. A report last month indicated that only 4% of all ICOs become successful, making the sector a big risk to invest in. However, ICOs also remain the easiest way to raise funds for startups and other firms which want a financial boost.
