Legal support of ICO

Legal support for ICO projects based on Blockchain technology is one of the main activities of our company, which is part of a comprehensive range of integrated services. If you are interested in attracting money for your projects using Initial Coin Offering, then without qualified support from lawyers you cannot do.

What is included in the legal support of ICO?

Contacting our company, you will be able to get full multi-level support for ICO at any stage of development. Our responsibilities include an individual approach, and in the case of blocking technologies, these are not a blowing smoke, but a reflection of reality, as there are no two identical projects, and professionals must develop a client-oriented approach to minimize the client's risks and solve all the challenges. Our duties include such activities as:

  • Legal development of the ICO implementation model
  • We create a so-called risk matrix that visually shows potential threats to the ICO-project
  • Qualified lawyers with practical experience in this innovative environment will produce tax planning for the implementation of the ICO.

If this is required, we will choose the optimal conduction jurisdiction.
We are also responsible for the registration of companies for IСO and provide full support for the process of opening accounts in banks.
We will take care of all the issues concerning the preparation of a portfolio of documents for competent conduction without unpleasant surprises.
Employees of the company with specialized education will help clients with legal support of a wide range of procedures for holding and closing ICO.
We will contribute and fix all the commitments made.
We not only develop White Paper, but we also carry out a multi-faceted legal check of "white books", if you already have them.

In any business, it is important to act in the legal field to minimize risks, and for this purpose, competent managers attract lawyers, but in the field of cryptocurrency it prevails. Otherwise, too much is at stake - money, time, the whole project, considering the current situation at the legislative level.

Legislation and entering the ICO

Many entrepreneurs, planning to enter the ICO, ignore the need for legal support, explaining this by the fact that in Russia now there is no clear legal regulation of the Blockchain technology. However, no one abolished federal laws such as FZ-149 "On Information, Information Technologies and Information Protection", as well as FZ-162 "On Standardization in the Russian Federation".

All those products that are based on Blockchain technology, automatically fall under the definition of "information systems", which means that they are most directly regulated with the above-mentioned FZ-149. Hence the consequences calling for the observance of all confidentiality standards, the access to which is limited by federal laws.

To date, legal risks exist when using Blockchain technology in products that are directly related to the publication of data relevant to restricted access categories. This should include:

Personal data

Highly classified information (state, commercial, bank).

This means that even at the stage of creating blockchain-products it is necessary to consider the impossibility of dissemination of information of this nature, since it must be encrypted or depersonalized. Otherwise, the violator may be held liable both administratively and criminally in accordance with articles 183 and 283 of the Criminal Code of the Russia Federation. It should be noted that the lack of legal regulation and objective judicial practice does not allow us to clearly answer the question of how the person responsible for disclosing such information will be determined, therefore, there may be too many victims. Technologies are developing, time zips along, therefore, within the framework of legal support it is necessary to consider not only the current situation, but also its potential development in the future. All this fully applies to such a direction as smart contracts, and autonomous organizations.

Crypto-currencies and their legitimacy

As for tokens, all crypto-currencies with crypto-assets are a perennial source of questions about the possibility of their inclusion in the legal field. The problem is that the concept itself appeared from the very beginning in a purely technical environment, and there was no looking back at law aspects. There is no doubt that along with the growth of popularity, answers will be sought to the questions of the legal nature to maintain a balance in the interests of all participants of the economic relations, that is why now it is worth paying close attention to legal support, provided by the professionals with a big P. Legislative regulation, a priori, cannot be simple, taking into account the different nature of the obligations generated by the tokens, since such a new type of assets combines the objective attributes of obligations and real legal relationships.

To date, the following regulatory legal acts of the current legislation somehow help to regulate issues with crypto-currencies:

  • FZ-161 "On the national payment system"
  • FZ-173 "On Currency Regulation and Control"
  • Letter of the Federal Tax Service of the Russian Federation "On Measures to Control the Circulation of Crypto-Currency"
  • Information of the Central Bank of the Russian Federation "On the use of "virtual currencies" in making transactions"

Up to date, there is no established legal regulation of the crypto currency, and this uncertainty is due to the fact that:

  • It cannot be defined as a payment system or electronic cash, based on information in the Federal Law "On the National Payment System".
  • This is not a foreign currency, if you rely on the law "On Currency Regulation".
  • Crypto currency also does not fall under the objects of civil law listed in Article 128 of the Civil Code.

Yes, the existing statements by regulators are only informative. But this is only for now. Currently there is no legal protection, but this is temporary. We need to think ahead of all aspects of the entering the, to adapt quickly to the changing market, and legal support by our specialists will be an excellent help.

Tokens and the law

You cannot talk about entering the ICO and do not touching the legal status of the tokens. We note that here, in the absence of more, we are starting from such normative acts as:

  • FZ-39 "On the Securities Market"
  • FZ-173 "On Currency Regulation and Control".

Crypto assets secured by obligations are something other than crypto-currency, and the legal approach has its own specifics. Here the structure of legal relations is similar to the situation with non-documentary securities. Starting from the rich practical experience and in-depth study of the topic, we can conclude that sometimes civil law at the current stage of its development can admit contractual relations between the two sides:

In this case, the crypto-currencies are transformed into records of the fixation of contractual relationships. Slight problem: at the will of the issuer to give the token owner significant rights and make an appropriate offer when issuing assets.

ICO и правовое положение

In conclusion, it’s necessary to emphasize that the procedure of ICO is not regulated by the legislation of the Russian Federation now, which does not make the attracting investment a legal injury. Is it a paradox? However, the platforms themselves, on which the ICO is conducted, fall under the regulation of certain laws that affect the dissemination of information on the Internet, as these are web sites. This means that the requirements for limiting the following information are active:

About suicide
Concerning extremism
About drugs and their spread
Other prohibited content

The sites are considered information intermediaries, so they can be held liable in case of copyright infringement. As for the legitimization of the relationship between the owner of the tokens and the issuer, this is possible when concluding an investment agreement on the division of profits, in other words, a contract that will provide for the exchange of investments for a share in profits.

Since the legislation has not determined the position of all ICO participants yet, all questions about the origin of rights are resolved considering the existing conditions in the agreement on holding, in other words, in the offer. They indicate the rights of the owners of the tokens. This is another reason why it is worth taking care of the legal support for the project, including the competent preparation of the offer.

As a resume

The old kind expression "The law is harsh, but it is the law" will never lose its relevance. The ICO phenomenon is relatively new, it attracts many to the lack of regulation, but this is an incomplete picture that can be misleading without the help of qualified lawyers. Yes, there are no specific rules governing the conduction of the ICO, but this is not an obstacle to the introduction of emerging obligations in the legal field. If the procedure is properly formalized, it is possible to qualify such relations as a civil law transaction, so much depends on what desires and goals of fundraisers, in other words, our clients, they want to empower their investors.

Leave the request right now, and we will hold the first free consultation, within which we will consider how necessary it is for your project to provide legal support for ICO, how much it is able to secure the activities. Also we are happy to answer any questions that will arise.

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