Belarus To Introduce Education, Income Requirements To Invest In ICOs, Crypto

May 9, 2018 6:24 pm Published by

CoinTelegraph reports The National Bank of the Republic of Belarus (NBRB) is considering strict requirements for investing in Initial Coin Offerings (ICOs) as well as rules for crypto exchanges, a source close to the bank told local IT media outlet

Under the new rules, the report said, regulators proposed a limit on ICO investment to qualified investors only to minimize the risk of common investors losing their money.

The new rules, CoinTelegraph reports, define qualified investors as fulfilling two of four criteria: If the investor has relevant education and work experience. If an individual lacks either of these, they must fulfill one of the financial criteria. reports the financial threshold to become a qualified investor is “very high.” Potential investors will be required to have a $20,000 minimum annual income or $50,000 minimum savings, the report said. Both sums may include crypto assets and securities, as well as fiat money, the report said. According to CEIC data, Belarusian annual household income per capita was $3,478.27 in 2017.

Apart from  minimums for annual revenues and accumulated capital, CoinTelegraph reported, qualified investors must also possess special education and work experience in the relevant field. The report says the same standards will apply to cryptocurrency traders. 

According to the source, “Belarusian crypto exchanges and ICO issuers have no room for error. The investment system in Belarus is at the stage of formation,” the report said. “If any Belarusian ICO project which raised money from the citizens fails, it can become a national scandal. People will lose money. Therefore, at the initial stage of development, we propose to limit ourselves [sic] only to qualified investors.”

In addition, the source said, “For ICOs, regulators are planning to set a number of qualifications and reputational requirements, such as an absence of debts on budget payments, risk management policies, internal control policies, and anti-money laundering (AML) policies.”

The source said, “Advertising requirements for ICOs are similar to those prescribed for cryptocurrency exchanges: They should not contain promises of guaranteed income, but rather an extended warning on investment risks. The upcoming ICO rules will take “international experience” into account, and would be flexible in order to adapt with dynamic and fast-growing cryptocurrency markets, the source says., Jack Durschlag

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