The government of Kazakhstan is preparing to sign on these days the Concept of legal regulation of cryptocurrency market and private placement securities. Document developed international financial center «Astana» (IFCA). The authors of the first in the world have defined the concept of cryptocurrency and token, and developed a system for the protection of investors ‘ rights.
As the signing of the bill will affect Russian businesses, whether they relocate your tryptamines in Kazakhstan, and why the conduct of the ICO projects under the IFCA promotes collaboration with countries of the silk road, the correspondent of the Bts.media said the head of the working group of the State Duma of the Russian Federation estimated the risk of cryptocurrency circulation Elina Sidorenko.
Elina, share your opinion about the bill in General?
I am impressed that the authors of the concept of legal regulation of cryptocurrency has taken into account the problems that arose when other sandboxes, including Belarusian. In addition, lawmakers have proposed their own understanding of cryptocurrency and token firing Glossary. This can very seriously affect the cryptocurrency market. A General introduction to the regulation definitions of the terms used in it is very good legal technique, not the traditional Russian legal models. It will allow investors and developers to clearly understand the field in which they will soon be playing. I believe this could be the impetus for the harmonization of the General model of regulation in the world of cryptocurrency market.
What are the positive aspects of the concept will make tryptomer?
First, the concept involves the creation of a well-organized regulatory sandbox, which was originally built for the full cycle of trafficking scriptaction, starting with the construction of the legislative and regulatory frameworks, and ending with the availability of judicial protection. Now in the world there are such areas where this idea was implemented in full. Kazakhstan is trying to do.
Second, the legislators of Kazakhstan with the work on the concept was based on the Anglo-Saxon system of law with its case-law, transparency and flexibility. It allows you to vary the rhetoric depending on the trends of the market through the removal of certain judicial decisions. Also Kazakhstan is now beginning to shape the system of judicial precedents, that through the adoption of separate decisions to determine the direction of regulatory mechanisms. This is very good because in this way they ensure a relative flexibility and ability to respond to technological trends.
By the way, in a pool of so-called founders of the sandbox came the British. This means that they are interested in that this story began to develop and found the proper integration in Europe. Thus using this structure in Russia may be a corridor with Britain and other European countries.
Thirdly, the head of IFCA is directly under the President of Kazakhstan. This means that the country has built up a very good vertical power, when the Central Bank together with the Ministry of Finance to govern the General financial situation in the country, as IFCA has a closed regulatory status of the site. That is, there are two national legal system of the country in General and the sandbox in particular. This allows you to designate the border between the General regulation and the regulation of Finance. I believe that this example can be contagious for many countries.
Fourthly, Kazakhstan is not doing the obvious and very frilly benefits for people who will enter in these sandboxes. That is, there are different tax regimes individuals and companies, depending on what the person.
Finally, Astana sees the regulations in the framework of the multicurrency fields and allows you to fully implement all ICO projects within the country.
And negative points are there?
Of course. The Central Bank of Kazakhstan reluctantly accepted ideas associated with cryptocurrencies and ICO. Beyond that, there are not developed solid and accurate advice on how Fitna the existing currency will be displayed beyond the IFCA. This is a problem not only in Kazakhstan but also in other sandboxes that are now emerging in the world.
Can the adoption of the concept to distract investors from the Russian cryptocurrency market?
No. I believe that not too many were domestic investors in the Russian market, to much to take care of their serious outflow. In addition, if the Russian projects will be developed in the framework of the IFCA, they in any case will not lose his Russian self. On the contrary, they will become attractive not only for Russian investors, but investors from the countries of the silk road: China, Azerbaijan, Kyrgyzstan, Georgia, Turkmenistan and others, because these countries plan to develop its financial technology on the basis of Kazakhstan. Even the state of the silk road is a new political and economic force, which tomorrow will be able to conquer the world.
How to change category of investors after the adoption of the bill?
After the signing of the concept of Kazakhstan will become a really serious platform to attract interesting investors from the East. So there comes the business, which is focused on the development of service projects with the requirements of the AML / CFT law, identification and conservation of personal data.
Entrepreneurs that seek only to raise as much money as possible, after the adoption of the concept of IFCA will not build a business in Russia or Kazakhstan. Now, not only in Russia but in the world of cryptocurrency market is being decadestwo. People who are easily attracted to this field of money, disappointed: the market has matured, so hope that suddenly they will fall one freebie that was in 2017, the year is not necessary.
Is there any sense to the Russian players of the stock market to relocate business in Kazakhstan?
I would advise them to stay within the Russian legal field. I can’t say that in the near future in Russia will take some adequate law. Unfortunately we, the experts, the legislators are not willing to listen. However, if our recent recommendations in the second reading the law on digital assets will be taken into account, the country will have a good regulatory system of financial technologies. In the preparation of the law for the second reading we insisted that lawmakers abandoned the strict regulation of cryptocurrency and were limited to introduction in the legal field, the concept of cryptocurrency and token to the developers of ICO projects could now begin to attract investors. If lawmakers decide to do so, Russia will be a very good jurisdiction for further development of cryptobytes.
I also believe that Russian businessmen to open branches and subsidiaries in IFCA, because this site can be very useful from the point of view of attracting investment. Therefore, players of the Russian stock market definitely should know that Kazakhstan can offer them, in terms of infrastructure and to continue to work in the framework of the Eurasian economic Union.
The concept protects the rights of qualified investors. Why?
Unskilled investors is an indicator of what direction the market moves. That attracts qualified investors, interested in the community. So now it would be strange to exclude from this market of non-professional investors, given that originally they formed the basic concept of ICO. In fact, it is the people’s investment. When we close the ICO for qualified investors, we turn to the securities market. This clumsy system that has existed since the XIX century, capable of implementing the tasks posed by the market. Therefore, unskilled investors need.
How the document will protect unqualified investors?
First, the concept defines the maximum limit of funds that can make unqualified investors. In Kazakhstan, this limit is much higher than in Russia.
Second, unlike the Russian law on digital assets, the concept is clearly defined mechanism of protection of the rights of qualified investors in court. Unfortunately, the judicial protection of their rights at the moment, no country in the world.
Finally, Kazakhstan has developed an interesting model for the description of smart contracts. They propose to consider smart contract as a contract on the basis of the algorithm. The basic ideas, tenets should be reflected in the so-called Terms and conditions. I think this is a very good model for the protection of investors ‘ rights.
How do you see the future of the concept: when it will be, will the legislators to make amendments?
This bill in all its principal positions found full understanding in the higher authorities of Kazakhstan, so the government will sign in the coming days.
From the point of view of development prospects I believe that regulatorika will evolve. This is due to the fact that the legislators have ensured its flexibility through judicial precedents. I also believe that the concept will make a substantial amendment regarding the cooperation with the banks. Also in the near future the government of Kazakhstan will define the rules of interaction of the sandbox with the state. Finally, I believe that over time market participants will need detailing activities of exchange platforms and exchanges. Undoubtedly, it will be very toughened regulatorika in the relationship of user identification, systems of accountability and responsibility for distribution of personal data.