A senior official at Russia’s Central Bank insists the so called initial coin offerings (ICOs) could drive funding opportunities for startups, which is why the regulator is ready support the development of the blockchain funding model.<\/p>\n
“Our country has a tremendous potential of innovations, our students, young people and entrepreneurs have the edge over any country in the world from the viewpoint of ideas, and amid the lack of classical institutions of startups support, ICO development has a huge potential to finance those ideas,” <\/strong>Bank of Russia first deputy chairman Sergei Shvetsov said Tuesday.<\/p><\/blockquote>\n
Though this is an obviously challenging task, Shvetsov is optimistic:<\/p>\n
“Hopefully, ICO will take a rightful place on Russia\u2019s financial market,”<\/strong> he said.<\/p><\/blockquote>\n
He also noted that, unlike fundraising with securities, this method is based on some sort of an \u2018honorable agreement\u2019, or so-called soft promise.<\/p>\n
\u201cWe have to create a regulatory framework that wouldn\u2019t kill the basis of entrepreneurship but at the same time would protect investors from obvious fraud and the abuse of the opportunity to raise funds which can in fact be spent on something else,\u201d <\/strong>added Mr. Shvetsov.<\/p><\/blockquote>\n