Topic: How to Legally Run an ICO in the United States and UK (Read 160 times)
Thanks Everyone
So the fact you can buy stuff with the token post fundraiser makes no difference if we give people a company share with very 300 coins purchased ?
With our coin/token
You can buy services from us
You also get a company share with every 300 coins purchased
The coin I hope will be traded publicly and listed on exchanges.
So if this an offering that need to be regulated or is it a utility token crowdfund
Can someone point me me in the right direction of some lierature that gives guidelines on running a legal ICO in the United States ?
Our company will not just offer coins, contributors will also get shares in the company, we will hire a legal team but for now I am curious.
Any help or links appreciated. I am looking on my own as well via google.
JOBS Act of 2015 and Securities Exchange Act of 1934 are your best friends here.
I have read that if the tokens are tied to a share of company profit then it will be considered a crowd sale by the sec. If the token can be used to buy something then it is a crowd sale not an ICO.
You are mixing everything together.
For the securities law, a token is either a security or not (profit sharing or "company share" are security token examples, utility token is not a security).
To be considered not a security, a token should not pass a Howey test (in the US, can be different in another country - i.e. Singapore).
The only legal ICO in States is the IPO. All other options are more or less unregulated
The JOBS Act of 2015 offers plenty of other options
Everyone keeps saying that there is no way to do an ICO right, that is not correct. Research a little bit on the "regulated ICO". I expect we'll see a new wave of regulated ICO's in the next several months.
The first thing to understand is if your token is a security or not. If yes (be honest here, many make a mistake calling something a "utility token" when it is definitely a security) then you fall under the securities law.
Basically now you are preparing a security offering (named ICO for convenience). Now search if you can use one of the legal exemptions so you do not need to register your offering with the exchange regulator in your country (or accept the price and register your offering)
This is just a direction where to look. And of course, do it with your lawyers.
The first thing to understand is if your token is a security or not. If yes (be honest here, many make a mistake calling something a "utility token" when it is definitely a security) then you fall under the securities law.
Basically now you are preparing a security offering (named ICO for convenience). Now search if you can use one of the legal exemptions so you do not need to register your offering with the exchange regulator in your country (or accept the price and register your offering)
This is just a direction where to look. And of course, do it with your lawyers.
I have read that if the tokens are tied to a share of company profit then it will be considered a crowd sale by the sec. If the token can be used to buy something then it is a crowd sale not an ICO.
The only legal ICO in States is the IPO. All other options are more or less unregulated
Can someone point me me in the right direction of some lierature that gives guidelines on running a legal ICO in the United States ?
Our company will not just offer coins, contributors will also get shares in the company, we will hire a legal team but for now I am curious.
Any help or links appreciated. I am looking on my own as well via google.
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