What is the best way to make STO/ICO fully regulated and become fully legal ?

[WoWNull]

Hello,
We are planning to implement a token to be act as a share and getting dividend from our company profit, but still i am lost with the laws and license in different regions.

Anyone have some experience with similar thing?! or read about it or saw a project implement it this way.

I saw tokens who pay dividends, but these are from the fees etc.. but NOT AN ACTUAL COMPANY PROFIT.

 

[ernestdezoe]

The regions don't matter.

The epicenter of a social movement like crypto is the US. If you can't target the US your ICO won't get off the ground.

SEC said that you can't target US persons. You are better off saying that you do an ICO among your circle of people that you can reach directly via offline marketing and then at the last moment telling them that you are doing a regular equity crowdfunding instead.

At least you get to use the buzzword to generate hype

 

[EuroKiss]

The regions don't matter.

The epicenter of a social movement like crypto is the US. If you can't target the US your ICO won't get off the ground.

Not really. Outside the US the crypto movement is equally or even stronger.
STO/ICO is a sensible part of the crypto business, I think Dubai is the best jurisdiction to do this.

 

[WoWNull]

I think Dubai is the best jurisdiction to do this.

its really expensive, and to get the license for STO/ICO its nearly impossible. ( i live in dubai so i got all the details before, its really not the time for it, the only license that can get it easily the buy and sell { not exchange }, other license is not easy and very expensive ).

 

[WoWNull]

The regions don't matter.

The epicenter of a social movement like crypto is the US. If you can't target the US your ICO won't get off the ground.

SEC said that you can't target US persons. You are better off saying that you do an ICO among your circle of people that you can reach directly via offline marketing and then at the last moment telling them that you are doing a regular equity crowdfunding instead.

At least you get to use the buzzword to generate hype

i am trying to get some details about getting approved by SEC but i found that even big projects they dont have that approval, so i may really forget about US.

 

[Russky]

We are planning to implement a token to be act as a share and getting dividend from our company profit

What you said defines it as a security by definition and it fails the Howey Test.
If you do a public ICO, you will be chased by the SEC to the end of the world.

You will need to spend a shitton in lawyers for compliance, restrict the ICO to accredited investors only (just like a startup raising seed funds), and avoid US citizens at all costs.

If all you need is to use the blockchain in lieu for stocks for your startup, you can structure your company with Korporatio.com instead.
You can establish a proper company based a smart contract (a true DAO) with base in Wyoming.

 

[WoWNull]

What you said defines it as a security by definition and it fails the Howey Test.
If you do a public ICO, you will be chased by the SEC to the end of the world.

You will need to spend a shitton in lawyers for compliance, restrict the ICO to accredited investors only (just like a startup raising seed funds), and avoid US citizens at all costs.

If all you need is to use the blockchain in lieu for stocks for your startup, you can structure your company with Korporatio.com instead.
You can establish a proper company based a smart contract (a true DAO) with base in Wyoming.

so the best way to avoid US.

how does it work with wyoming?! if SEC is not allowing these things?!

i saw korporatio i hope they reply my email soon for this.

 

[EuroKiss]

its really expensive, and to get the license for STO/ICO its nearly impossible. ( i live in dubai so i got all the details before, its really not the time for it, the only license that can get it easily the buy and sell { not exchange }, other license is not easy and very expensive ).

Yeah, I guess that, I put Dubai since it seems to me the most open country to do such kind of crypto business, but ICO/STO is the most difficult part of this biz and pretty much borderline.
Anyway, and to not open a new thread, do you have any news about “traditional” exchange license?

 

[Russky]

so the best way to avoid US.

how does it work with wyoming?! if SEC is not allowing these things?!

i saw korporatio i hope they reply my email soon for this.

Korporatio is not an ICO platform.
It is just another way to incorporate any other company.
Also, besides Wyoming, Korporatio offers have other jurisdictions you can select Panama, Seychelles and St. Vincent and Grenadines.

Whatever shares you would issue from there would follow the same way that you would with any startup seeking seed funds: accredited investors.

 

[WoWNull]

do you have any news about “traditional” exchange license?

yes they do have the license but still as i know only one company apply for it and still they didnt finish all things, they require a lot of information, deposits etc..

 

[FantomOffshore]

What you said defines it as a security by definition and it fails the Howey Test.
If you do a public ICO, you will be chased by the SEC to the end of the world.

You will need to spend a shitton in lawyers for compliance, restrict the ICO to accredited investors only (just like a startup raising seed funds), and avoid US citizens at all costs.

If all you need is to use the blockchain in lieu for stocks for your startup, you can structure your company with Korporatio.com instead.
You can establish a proper company based a smart contract (a true DAO) with base in Wyoming.

How would the SEC even know that you are doing an ICO if you limit exposure and keep a low-profile and are launching it from an offshore company in a privacy jurisdiction?