Legal support of ICO. Legal services in ICO
SBSB provides the service of legal consulting and support of the Initial Coin Offering procedure.
Initial Coin Offering (hereinafter ICO) is a fairly time-consuming and multifaceted process. Given the different approach to the definition and regulation of trade in crypto-active assets in different jurisdictions, as well as the increasingly stringent requirements of the global anti-money laundering legislation, an effective token-demand requires the participation of professional experts at all stages of its implementation - from idea to post-ICO support with the interests of both the business itself and its beneficiaries, and the holders of the tokens.
What legal aspects need to be considered when planning and implementing ICO?
Here are just a few questions that are needed to be answered before launching the ICO campaign.
In each country, approaches to regulating ICO are different. News in this area of regulation appear almost every day.
In some jurisdictions, the availability of a license from financial regulator is seen as a desirable attribute for the release and sale of tokens, in others it is a necessity - or vice versa, there is a prohibition for regulated companies and funds for transactions with crypto assets.
As a result, in different jurisdictions, a more or less favorable legal and political climate for the sale of crypto assets is formed.
Thus, Switzerland, Estonia, Singapore or Hong Kong are currently more favorable than Ukraine, China or Canada. We also recommend paying attention to the Cayman Islands for ICO with a loyal regulatory system.
Where and how you launch your ICO is a key question.
We will help you with solving this problem, as well as provide the registration of companies, opening bank accounts and, if necessary, obtaining the needed licenses and permits.
We know and understand the ICO regulatory tendencies and will help you to adapt to the inevitable changes in the future.
How will the business and financial flows of the ICO be structured?
Often it is advisable to divide the management structure and the company - the issuer of tokens. In addition, the process of obtaining and distributing deposits may require the participation of a third party, an escrow agent that ensures the security of operations.
Also, the procedure for repaying funds must be developed - even in the event of a failure, ICO's timely return will help you not only avoid litigation, but also maintain a reputation for future projects.
SBSB experts will conduct a detailed analysis of your project and offer a structure that best suits the interests of both the beneficiaries of your business and the depositors in the ICO.
Whom to offer, and whom to limit a participation in ICO?
Limiting the offer of tokens for a number of jurisdictions and/or categories of investors is one of the key points that will minimize your legal risks. To determine the target and non-target categories of future investors, a detailed analysis of the token's characteristics is required, as well as a legal assessment of the planned ICO from the point of view of national legislations.
In a number of jurisdictions, your token can be recognized as a security, and as a result, an ICO in a given country or for its residents may require registration from a local regulator.
In addition, as the recent failure of ICO Munchee (MUN token) showed, the target category of buyers (prospective users, investors, professional investors) is also important for the legal qualifications of the ICO and the rules applied to it.
Risk assessment, definition and control of such restrictions are an integral part of the work of SBSB specialists in the process of preparation and support of ICO projects.
How to ensure compliance with AML and KYC during the ICO?
ICOs face serious requirements regarding to AML/CFT rules and Know Your Customer (KYC). Many rules for AML supervision and regulation are approved at the local level and can vary from country to country. Your ICO will need to work through and follow the procedures for identifying depositors.
SBSB will help your ICO fulfill AML/KYC requirements. Our legal team has a significant experience in the field of international finance, so we are able to bring your business in line with these requirements.
What documents are required for the ICO?
The main marketing tool for the ICO is, of course, White paper. However, do not forget about the whole package of contractual documentation that regulates the relationship between all participants of the process, from the beneficiaries of the company to visitors of your website. In addition, the initiator of the ICO should ensure the availability of internal documentation for AML/KYC, protection of personal data, etc.
SBSB team will guide you through all the stages of the preparation and conduct of the ICO and save you from unnecessary risks in this process.
For over five years we have been consulting our clients, CIS residents, in corporate law, FinTech and E-commerce, international licensing and integrated business support in more than 40 countries.
Call us and get a free consultation on your project right now.
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