Crypto (ICO, blockchain, cryptocurrencies)
Since the inception of Bitcoin in 2009, throughout the past 9 years cryptocurrencies have gained mass popularity and are used for transactions worldwide. These days international, foreign and local Russian businesses are accepting cryptocurrencies on par with traditional national fiat currencies. Many experts say that cryptocurrencies have the potential to supplement or even completely replace fiat currencies within several decades.
The underlying cryptocurrency technology – distributed ledger, or blockchain – is now viewed by many as the technology of the future that should be implemented wherever possible. Through the past 3 years there has been a massive spike in blockchain-based crypto projects, ranging from ones utilizing the technology to “tokenize” traditional assets to projects issuing internal “utility” tokens to be used to access and use a project’s platform functionality. Those crypto projects that lack initial investment usually seek funding through Initial Coin Offerings, or ICOs. ICOs offer their founders unique opportunities to raise capital through a specific variant of crowdfunding where a digital token is provided to a party that wishes to contribute to that project in exchange for certain perks.
However, both cryptocurrencies and projects raising capital through ICOs are now subject to scrutiny from regulatory agencies worldwide. Since there presently are no uniform, global standards for regulation of cryptocurrencies and ICOs, each jurisdiction that seeks to regulate the crypto industry applies or creates its own regulations. These regulations vary from country to country, and range from formal permission or introduction of certain restrictions to complete ban on cryptocurrencies and ICOs.
Presently, navigating the jurisdictional restrictions and conducting an ICO that will both raise capital and not break any jurisdictional bans or regulations is tricky at the very least. The good news is we have the required experience and expertise to help you do just that.
Our Crypto legal services include:
- Consulting on setting up blockchain / crypto start-ups and public blockchains in various jurisdictions;
- Full legal support of existing and planned crypto projects raising capital through ICOs, from basic White Paper review and revision to drafting full document packages for projects, including support of local legal counsel in the selected jurisdiction(s) of incorporation;
- Providing detailed analysis and review of legal regulation of operations with cryptocurrencies and ICO / digital token status in various jurisdictions, including matters of compliance with local legislation and risk management.