Cryptocurrency

What legal structure is well-suited for ICOs in unregulated markets?

Ivan Kv Looking for blockchain technology advisors

May 20th, 2018

I am thinking of launching an ICO in unregulated markets. My partners and I are U.S. citizens. Should I form an entity in the U.S. (for the ICO purposes) or should I find some other ways to go about it?

Mr. Kelly Johnson Looking for Co-founder

May 22nd, 2018

I'll second that. Invest in a good Securities Lawyer. Not just one that tells you what you want to hear, but one that explains the process well. I interviewed many Securities lawyers before settling on the right fit. Not for ICO stuff, but in the same region.

Find one in the US. Even if you are planning on entering unregulated markets, there is still a lot to consider. Including the expectation that US securities laws will eventually catch up to ICO's and have a dramatic effect. As well as those unregulated markets becoming regulated.


On a side note: I personally wouldn't touch an ICO with a 10' pole for may many reasons.



George Lambert Interim CTO - CTO's for Hire

May 20th, 2018

The SEC has clear advice on their website. USE EXTREME CAUTION.


https://www.sec.gov/ICO


As SEC Chairman Jay Clayton has stated, tokens and offerings that feature and market the potential for profits based on the entrepreneurial or managerial efforts of others contain the hallmarks of a security under U.S. law.


Market participants should use caution when promoting or touting the offer and sale of coins without first determining whether the securities laws apply to those actions. Similarly, those who operate systems and platforms that effect or facilitate transactions in these products should be aware that they may be operating unregistered exchanges or broker-dealers that are in violation of the Securities Exchange Act of 1934.