VIRTUAL CURRENCIES – INITIAL COIN OFFERING (ICO) / INITIAL TOKEN OFFERING (ITO)
Similar to IPOs potential investors of ICOs/ITOs are offered “Coins” or “Tokens” in return for their (virtual) capital. While Tokens are based on an already existing Blockchain (Smart Contracts) Coins are based on a newly developed Blockchain. # Virtual Currencies
In case a company intends the issuance of Coins or Tokens various aspects have to be considered. Such aspects may be divided into (1) Technology; (2) Legal; (3) Business and (4) Marketing. # Virtual Currencies
In our current blog we will deal with “Legal” and “Marketing”. The reason for combining those two subjects is that under Austrian/European capital market regulations marketing (brochures, internet, TV, etc) for investments is restricted to some extent.
Issuers must check whether the respective ICO/ITO is to be regarded as a public offer which requires a capital market prospectus. While the Austrian Financial Market Authority currently does not qualify Coins/Tokens as securities/financial instruments in general, they already have intervened with previous ICOs/ITOs. # Virtual Currencies
Irrespective of the qualification of Coins/Tokens as securities by the Austrian FMA issuers also have to consider legal aspects on Austrian civil law. For instance, from a civil law perspective Whitepapers could be qualified as capital market prospectuses with respect to prospectus liability. # Virtual Currencies
Hence, particularly liability regulations with respect to prospectus liability should be considered. Due to our extensive experience we can help you to examine and reduce risks regarding ICOs/ITOs.
We would be happy to assist you by:
- Review and Examination of your business model regarding current banking and capital market regulations comprising statement on potential future regulation risks.
- Support regarding discussions on the business model with the Austrian Financial Market Authority;
- Legal Advisory of your company during the ICO-/ITO-process including our network of auditors, IT-specialists, PR-consultants.
- Support in potential supervisory-, civil or criminal proceedings with a team of domestic and foreign specialized lawyers (e.g. commercial criminal law), auditors and litigation-media-experts.
In case of individual questions, we would be happy to invite you to a personal meeting to discuss your needs and to show you how we can assist you.
Simply send us an e-mail to: GL@GEORGESLESER.COM
# Virtual Currencies