New Platform to Offer Protection of Crypto Investments in Russia 

 

The subsidiary bank of the state corporation VEB Globex together with the Russian Association of Crypto and Blockchain (RACIB) and the CrowdHub Internet project are creating a system for protecting investments in Russian ICOs. The system will start working this year.  

What are these organizations? 

Russian Association of Crypto and Blockchain (RACIB) – is a public organization of developers and users of all blockchain technologies. The main goal is to support integration of blockchain into various spheres of economy and social life in Russia. Organization is recognized by Russian government and is widely involved in all blockchain related discussions.  

Bank of the state corporation VEB Globex – is a large state-owned bank (58 place in Russia by capitalization) that is primary focused on commercial lending.  

CrowdHub – universal crowdfunding portal with integrated escrow mechanism (Escrow) and the ability to carry out both ICO and classic crowdfunding projects.  

How this system will work? 

A system for protecting investments in Russian ICOs will be created. The director of the ARCSB, Arseniy Shcheltsin, explained that together with "Globex" the parties intend to create an ICO-hub, the main element of which will be a system of guaranteeing investments in cryptocurrency start-ups. 

It is assumed that startups will be encouraged to apply to RACIB to attract financing under the new scheme. Companies will need to register on the CrowdHub.io site and open a wallet and escrow account in the Globex bank. 

All investors should register on the CrowdHub.io site as well. Investors will transfer funds to the wallet and CrowdHub will be responsible for further funds distribution.  

Funds collected on ICO stage are no transferred immediately to the team. Project implementation and team spending will be controlled by groups of investors. Rotation politics will be applied to change investors in these groups. If appointed investors decide the project is doing well (i.e. fulfilling promises), they vote for transferring another part of funds gathered on ICO to the team. If 51% votes against the project, it is removed for the platform and all unspent money are returned to investors.  

The project is scheduled for launch in March of this year. The test period will last at least 3 months. This time will be required to collect ICO statistics and initial system adaptation. 

The opinions of experts on the proposal were divided. Some argue that in the absence of regulation of the ICO industry in Russia, such self-regulation may prove to be a viable idea. Others draw attention to the fact that there is no mechanism for protecting the rights of persons investing in ICOs, which means that the procedure for resolving disputes in this market has not yet been determined. 

According to data of CryptoBazar platform, around $200 million dollars were invested in Russian crypto projects in 2017. The most known projects are SONM ($42m), RMC($45m) and MobileGo($53m).    

Sources for this article:    Cryptics ,   RACIB

Disclaimer 

I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion.  

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