Blockchain/ICO

 

The global economy is changing. Therefore, traditional payment instruments and methods are undergoing a fundamental change as well. We understand the increasing need for ‘tokenization’ of C2C, B2C, and B2B transactions. We also believe that over the next five years blockchain technology will change our life for the better and make financial transactions easier. Having said that, we are happy to take care of the legal aspects of your business in order to create and develop the future of information technology, and this is why we want to be part of it. Please be advised on the three main practice areas of our company which aim at innovators and developers.

We also accept cryptocurrency and token payments.

For innovators purchasing cryptocurrencies and tokens

 

ICOduediligence

Before committing to a typical M&A transaction, many investors may want to conduct due diligence of a target company. ICO and VC transactions are fast, and their speed is exactly what attracts innovators. We are doing our best to keep up with the latest trends, and provide a ‘rapid’ legal due diligence, which includes:

Due diligence of a legal entity which aims to identify red flags, ultimate beneficiaries, and potential risks (e.g. violation of a registration process, shareholders structure or a requirement to obtain necessary permits, such as licenсes, which may result in a judicial winding-up of a legal entity).

ICO due diligence, identification of red flags. Due to a variety of initial coin offering types and ICO token models, we recommend to always look before you leap. The potential risks may include restrictions for investors due to specific regulations across jurisdictions, such as SEC or similar regulations relating to the issues of bonds or shares of stock under the control of governmental authorities. Having said that, we recommend investors to exercise a preliminary due diligence on ICOs in the respective jurisdiction, even though ICOs are poorly regulated in nearly any jurisdiction, and the common market attitude is to ignore legal aspects when investing in ICOs. At this point, we provide a short legal memo on the chosen jurisdiction outlining the main investment risks.

Tax due diligence on token purchase

 

Document preparation

As a rule, investors do their investments in ICOs with just one click. However, we advise our clients to prepare the basic investment documents in order to avoid the risk of losing money. We recommend getting in touch with miners directly only after you have received the basic set of documents. In this regard we provide the following services:

  • Analysis / amendment / revision of a white paper
  • Analysis / amendment / revision of an investment memo
  • Analysis / amendment / revision of an investment agreement
  • Analysis / amendment / revision of other documents which may be required for altcoin / token purchase

ICO trust management (family office)

When considering investing in ICOs, every investor should have a clear idea of what to do with the purchased altcoins / tokens. Based on our experience, many investors are following the latest market trends without understanding how to use the purchased coins.

We offer a comprehensive legal support prior to exchanging or purchasing altcoins / tokens.

  • Memorandum on a jurisdiction where tokens are used as a means of payment (whether it is restricted, prohibited by governmental authorities, and whether a paying party or receiver can become subject to fines or civil, administrative, and criminal liability)
  • Memorandum on cryptocurrency payments and accepting or exchanging altcoins / tokens
  • Memorandum on the ICO procedure
  • Tax advice on the ICO procedure

 

For those investing in ICOs, blockchain and other information technologies

Legal and tax due diligence relating to ICOs

Before launching an ICO globally or locally, we recommend conducting a basic legal analysis of respective jurisdictions, their regulations and legal requirements. A preliminary legal and tax due diligence can save your money, help avoid personal liability and possible conflicts with potential investors.

Document preparation

When attracting investors in the ICO space, you as miners should have a basic set of documents outlining investment potential of a project. Paperwork has little to do with developers, therefore we strongly recommend to oursource these tasks in order to save time. Speaking from our experience, VC services may vary across the projects. Some innovators aim at creating a company or investment funds in blockchain or ICOs friendly jurisdictions with employee incentive programs. Other investors prefer a company incorporated in the simplest form without an employee stock option plan. For this reason, we have compiled a brief list of services in this field:

  • Venture Fund or venture company registration
  • Development of an employee stock option plan (issuing a specific number of altcoins / tokens after ICO, and others)
  • Preparation / analysis of a white paper draft
  • Preparation / revision of a term sheet to be signed with potential investors
  • Preparation of an investment agreement and memo
  • Preparation of share purchase agreements / shareholders agreements

Legalcounselling

Every investment fund or a venture company must have a legal counsel to help ensure safe transactions. We offer to our clients outsourcing of this task to provide them with a fast and independent piece of advice. We prefer not only performing transactions but remaining by the innovators’ side and helping them build a new field of law.

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