With cryptocurrencies on the rise, startup companies are increasingly on a path to raise capital. Thus, Initial Coin Offerings (ICO) is acting as the popular fundraising strategy to date. This underlying technology is based on Blockchain.
Startups who have an idea to Start an ICO should initially know the regulations associated. Being an ICO Development Company, we assist startups in launching an ICO. This blog will give you a clear insight into the regulations and legal structure one should know before its launch.
What is an Initial Coin Offering Advisory?
Initial Coin Offerings are the crucial strategy to raise funds for Blockchain projects. Thus, in an ICO Whitepaper, you would have noticed about Initial coin offering advisory. The credibility of the ICO team and initial coin offering advisory plays a major role in the success.
Here are the roles performed by an Initial coin offering advisory:
- ICO Process Logistics
- Reviewing ICO website, documents
- Assisting in Whitepaper creation
- Legal Advice on Regulation Structure
- Represent the ICO at different events
- The Technical Blockchain platform
- Core business challenges to be addressed
- Screening and onboarding of token investors
- Supporting entities such as Whitepaper, website, dashboard, etc
- Drafting marketing plan for ICO
- Creating a business model for ICO
- Funds and token management for ICO
- Getting connected with Blockchain and crypto investors
In addition to this, a truly effective Initial coin offering advisory can add unprecedented and unique values to the investors. The person should have a good connection with investors or decision-making people.
Moreover, any advisor that has connections to these people will undoubtedly be useful. The reason is, that they would help you in advising a mutual partnership that helps benefit both the ICO-related company and those potential partners.
The Need for an Initial Coin Offering Advisory
Since the inception of the crypto industry, there have been many who have been trying to get involved in ICO projects. An Initial coin offering advisory is one role that is becoming increasingly necessary for adding value to the ICO projects.
The industry is currently experiencing a few scammy players in the field. Thus, it is important to have an Initial coin offering advisory by the side to figure out these people. This will need you to have a successful startup journey.
The range of experience required includes previous experience in successful ICOs, blockchain, finance, content, marketing, business plans, budgeting, etc.
In previous years, the Initial coin offering advisory was responsible for broadening the skill set of the core team in ICO since the potential investors look for the desired skills and experience in the team.
Moreover, their opinion counts a lot within the community. When such a person has an interest in your project and recommends it to others, the number of people buying your tokens will increase. Additionally, these ICO Advisors can take on what they are required & can provide you with the advice you need to establish the project.
The Legal Structure of Initial Coin Offerings in Different Countries:
As Initial Coin Offering Advisory is also responsible for providing legal advice, it is important to know the Legal regulation structure involved in each country. Right off the bat, we should understand that cryptocurrencies & tokens are still unregulated.
The regulatory status of cryptocurrencies including tokens mainly depends on the jurisdictions of the country. As most of the countries still haven’t made cryptocurrencies legal, it is important to consider them before their launch. Let us see the legal structure of Initial Coin Offerings in popular countries.
Switzerland
Switzerland is known as Crypto Valley because it offers regulation security, investor protection, reasonable tax rates, and acts as an ICO-friendly country. Therefore, Initial Coin Offerings are legal in this country. Moreover, Switzerland is the home of the Ethereum Creators & Foundation.
To create an ICO & launch them, they should initially be registered with the Swiss Financial Market Supervisory Authority (FINMA). Each application will be verified individually based on the merits of the token.
The United States
In 2015, the U.S. Commodity Future Trading Commission qualified Bitcoin as one of the popular cryptocurrencies. However, it is limited to Bitcoin alone, not other cryptocurrencies and tokens. With the emerging market, regulators in the US are now catching up with this.
Even with these strict regulations, the United States still hosts the largest number of Initial Coin Offerings. The regulatory laws vary from state to state. Anyhow, ICOs are expected to register with the SEC if they are offering the tokens that are considered as securities. KYC/AML regulations are also implemented to protect investors from scams in the industry.
Israel
Israel is the home of many popular Initial Coin Offerings in the market. Moreover, the country doesn’t have any protocols to register ICOs since they are considered legal in the country. However, to start an ICO business company, one should follow certain mechanisms.
Singapore
In Singapore, Cryptocurrency Exchanges & trading are legal and the city has been identified as a cryptocurrency-friendly country in recent days. The Monetary Authority of Singapore is focusing more on regulatory activities with ICOs.
Therefore, to launch an ICO in Singapore, it is important to set up a foundation. Next, the Singapore Government will allow one to declare how your ICO Tokens will be treated in the country.
France
France is a solid choice to launch an ICO since it has ICO-friendly regulations in the country. However, to operate a company, it should satisfy certain criteria:
- Description of the ICO project
- The Roadmap of the ICO Project
- Rights offered by the token
- Funds collected during ICO
- Purpose of the project & token
Malta
Malta is the home of cryptocurrencies. Binance, one of the popular crypto trading platforms has its roots in Malta. To put it in simple words, the country hasn’t regulated Utility Tokens and hence is free to launch an ICO. However, legal regulation varies with different token types. Therefore, it is better to register with the Malta Financial Services Authority (MFSA) for efficient operation.
Estonia
Estonia is one of the early adopters of Cryptocurrencies. Thus, the country has continued government support for ICOs, easy-to-navigate regulations, and competitive tax rates for an ideal jurisdiction.
Thailand
Thailand’s government is working hard to legalize ICOs and make sure that Initial Coin Offerings operate legally with a minimal amount of fees. At present, companies must register with the SEC and the process will vary slightly from other jurisdictions.
China
Cryptocurrencies and Cryptocurrency Exchanges are banned & marked as illegal in China. Hence, the country does not support legal tender for these digital assets. However, the ban of ICOs will only be for a temporary period until the Chinese government passes specific regulations.
Australia
Cryptocurrencies are found to be legal in Australia. This country has had a progressive implementation of cryptocurrency laws since 2017. However, while speaking about ICOs, the government has laid specific conditions that the tokens must satisfy to be legal.
What Kind of Initial Coin Offering Advisory do you Need?
Get to know the kind of ICO Advisor you require for your project. Not every Initial coin offering advisory out there is fit for it even if they are in the crypto field. Here are a few primary things that ICO Advisors will look into your project:
- The ICO Team must be passionate, talented & aggressive to perform their activities.
- The Team must have a good understanding of what they are & how they handle the tasks.
- The Team must have sound knowledge in & out of this field.
- The Team must be available for the long term.
Therefore, choosing the right people can be a good mediator between you and your potential investors. Because building something great always requires the right Initial Coin Offering Advisory for assistance.
Where to Launch your ICO Project?
A good ICO Advisor will act as a guide to launch an Initial Coin Offering in the specified country. Moreover, selecting a country to launch can also be a daunting task. If you hire the right set of ICO Advisors for your project, they can provide you with profitable results.
A couple of major benefits exist when choosing the perfect Initial coin offering advisory for your project.
- Legitimacy
- Knowledge & Experience
Final Thought
To put it all together, as most of the Initial Coin Offerings are failing, we should also know about the success stories of ICOs. Building something great usually requires a fantastic idea, a killer team & well-knowledged guide. They can add up value & benefits to the project to make it successful.
Undoubtedly, hiring the right advisory can take your projects to greater levels. If you are interested in creating an ICO and launching it instantly, we people at Icoclone are ready to assist you.
We are readily available to answer your queries.