Blockchain & Cryptocurrency
Security Token Offerings
Security Token refers to any token that may be classified as a security under the law. There is no specific form of a security token, but any token or coin (in an ICO) which fulfills for the US fulfills the conditions laid down in the Howey Test or the Risk Capital Test, and in certain cases the Reves Test. There are similar legal provisions or case law in other jurisdictions.
Irrespective of whether the Tokens are explicitly called Security Tokens or not by the issuer, the regulators are likely to evaluate each Token on a case-by-case basis and come to a conclusion of whether or not it is a security. This may prove to be very important because when a Token is considered as a security, there are several additional compliance requirements that need to be in place before its issuance and during the process of circulation.
Evaluating the features associated with the Tokens by qualified experts before their issuance can help the issuer identify whether the Token is likely to be considered as a security and enable them to take the necessary steps to comply with the regulations for its issuance.
Security Token Exchange Licensing
A Securities Token (STO) Exchange opens the possibility to be a key player in the rapidly growing world of Tokens, which are considered securities. With various forms of securities, including shares, bonds, and debentures, being issued in the form of securities tokens, an STO exchange is similar to a stock exchange for the future. A Securities Token Exchange can also be used to conduct a Securities Token Offering, which is similar to an initial token offering for securities. A Kazakhstan Securities Token (STO) License allows you to join a new but high-potential market.
Securities Token (STO) Exchange License is obtained in Kazakhstan after registering as a Domestic TOO (Ltd. Company), which then obtains subsequent permission as a Financial Service Provider from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the Ministry of Economy. The license allows the business to accept customers from other jurisdictions.
AML/KYC Compliance
Anti-Money Laundering (AML) and Know Your Client (KYC) laws across the world require businesses to identify their clients and understand the source of the funds being invested into their business. The businesses need to comply with strict legal guidelines that govern the process of collecting the information and verifying the authenticity of the information. Empire Global assists the business with the entire AML/ KYC Compliance process, which includes:
- Designing a compliant AML/KYC Policy.
- Recruitment of qualified professionals to oversee the AML/KYC processes.
- Communicating with the regulator about any suspicious activities or clients.
- Ensuring that the AML/KYC Policy is implemented according to legal requirements.
Cryptocurrency Funds
A Securities Broker-Dealer License enables an individual or a company to deal with securities which include shares, debentures, bonds, and other forms. A highly valued permission, it enables businesses to deal in securities on behalf of others and accept funds from clients in permitted jurisdictions. The license also enables acting as a market maker or as an agent to find clients for securities and also to act as an investment consultant.
A Securities Broker-Dealer License is obtained in Kazakhstan after registering as a Domestic TOO (Ltd. Company) which then obtains subsequent permission as a Financial Service Provider from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (‘Agency’) and Ministry of Economy. The license allows the business to accept customers from other jurisdictions.