Russian Regulators Reckon Developing A ‘Crypto-Detective Agency’

In one of the recent meetings at State Duma Financial Market Committee, it was suggested to develop a “crypto-detective agency” in Russia. The main motive of this agency was to amass all the data and knowledge about Russian companies that were planning to commence an ICO i.e. Initial Coin Offering along with its registry.

Proposition Submitted for Crypto-Detective Agency

The cryptocurrency regulation in Russia that included the legislative support of financial technologies was reviewed last week at State Duma Financial Market Committee. According to the report submitted by Izvestia Russian Daily, it was said that all delegates and counsellors from various domestic banks and regulators attended this meeting.

When talking about the IRI i.e. the Internet Development Institute, we should know that its aim is to cultivate and engage in operations of the industry of modern technologies in Russia. The President of the IRI foundation, Alexei Fyodorov, recommended a step to be taken in developing a specialized crypto detective agency. According to the new outlet, the President said “in order to safeguard the investors and bankers in cryptocurrencies in Russia, it is best to develop a specialized crypto detective agency. This agency will gather all information on firms that are planning to launch an ICO. All the information regarding the same will be safely reserved in a register. He described the agency they are developing will be able to excerpt all information about their beneficiaries and the real state of affairs. Before describing the complete agency and its features, he asked that “is this an endeavour or startup to fix the firm’s issues with the aid of the ICO?” He said their main motive is to safeguard the investors because when a firm that has engaged in getting funds from numerous people fails, its shareholders attempt to get protection from the state.”

Why was this method feeble and incompetent?

Russia’s internet chancellor, Dmitry Marinichev, widely recognized the requirement to accumulate such information and data. According to news.Bitcoin.com, he was constructing a mining framework in Russia in August in order to question China’s bitcoin mining superiority. As per the website, his firm, named Russian Miner Coin (RMC) held an ICO in the recent past that raised 1,205 BTC, 4022 ETH and $37-38 million. In addition to this, according to a presentation that they have on their website, they say that the RMC tokens have rights to 18% of the complete funds earned by the firm’s mining supplies.

Moreover, Marinichev also stated that it is pointless to obligate a firm in to enter the register. He also quoted that the registers are indecisive and fruitless but the techniques for handling the ICOs are required.

According to the publication, Eugene Gordeev who is the managing partner at Russian Ventures states that it is not mandatory to register companies in the market.

He also said that this step is like forcing to develop an agency that handles and finds out startups at its primary stage when the project is just an idea and a team. At that point, the project has a lot of information that cannot be examined. But if the venture capitalists achieve success, they will get 1000 times more than they invested or anticipated.