Belarus Will Introduce Education and Income Requirements for ICO and Crypto Investors
Education requirements for crypto investors
The National Bank of the Republic of Belarus is considering strict requirements for investing in Initial coin offerings. The regulatory framework will also be effected in crypto exchanges. In the Initial Coin Offering sector, the regulators proposed limiting the investment to qualified investors only so as to minimize the risk of common investors losing their money.
People will be considered as qualified investors by fulfilling certain requirements such as relevant education and having related work experience. If an investor does not meet the education or experience criteria they the can only qualify by meeting the financial criteria. However, the financial threshold for one to qualify is very high. They will be required to have either a 20,000 dollar minimum annual income or a 50,000 dollar minimum savings. The saving or earnings may be either in cryptocurrency, securities as well as fiat money.
Belarus annual threshold income per capita in 2017 was 3,478 dollars. Other than the accumulated capital and annual revenues qualified investors will also be required to possess special education and also work experience in related fields. The regulators will also require crypto traders to adhere to the same rules.
According to a source from the country’s central bank:
“Belarusian ICO users and crypto exchanges have no room to make errors. The investment system in the country is being formed and any ICO project which raised money from the Belarus citizens’ fails then it will become a national scandal. An ICO failing means people will lose money and that’s why we want to propose to limit ourselves to only qualified investors.”
For the ICO market, there will be additional requirements such as reputation requirements like an absence of debts on budget payments, internal control policies, and anti-money laundering policies. More to that advertising ICOs will not be required to include promised of guaranteed income but rather an extended warning on the investment risks.
The proposed ICO rules have taken international experience into consideration and will be flexible for them to adapt to the changing and fast-growing crypto markets. The country’s authorities will also revise the decree on digital economy development so that they will require several cryptocurrency exchanges to provide customer data to the authorities. The country has also introduced crypto accounting standards.