Blockchain & Cryptocurrency
Security Token Offerings
Security Token refers to any token which 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 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 him to take the necessary steps to comply with the regulations for its issuance.
Gambling License Support for Crypto Companies
Cryptocurrencies have emerged as a preferred mode for payment in many online casinos. A license for opening an online casino that also accepts cryptocurrency may enable you to access this new but rapidly developing market.
We at Empire Global already assist our clients in obtaining cryptocurrency gambling licenses in prominent jurisdictions including Alderney and Malta. You are requested to contact us immediately to enable us to guide you through the entire process of establishing an Online Casino accepting cryptocurrencies right from the stage of planning to operation of the Online Casino.
Initial Exchange Offering (IEO)
The term Initial Exchange Offering (IEO) came into existence in late 2017 and early 2018 when Initial Coin Offerings slightly declined. An IEO is the initial sale of cryptocurrencies or Tokens through a cryptocurrency exchange. While an Initial Coin Offering (ICO) is conducted directly by the issuer through its infrastructure, an IEO is conducted by the exchange on behalf of the issuer or backers of the Token.
Post ICO Token Sale Support
The requirement of compliance with laws does not end with the Token Sale process. The issuers, brokers and even the token holders need to comply with laws while conducting their operations and also while taking their business forward. There may be a need for maintaining regular communication with the regulators and also a need to comply with ever-changing laws. Empire Global assists in this process through
- Assistance in communication with regulators
- Ensuring that the business is compliant with ever-changing regulations through regular updates to its clients
- Assistance in the regular submission of documents with regulators
- Supporting the expansion of the business and product developments
- Assistance in dealing with investor grievances
- Support in the application process for new licenses required for expansion in operation
- Support in complying with the exemptions for issuance of securities after issuance of the securities.
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 as 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 Ministry of Economy. The license allows the business to accept customers from other jurisdictions.
A White Paper provides a detailed overview of your entire Cryptocurrency Token or Coin (‘Token’) based business for your investors and is generally the first but most critical stage of their decision-making process. A well designed and informative White Paper which provides information about your business and Token will enable your investors to connect with your business and take it forward.
A White Paper is also a document that is under the scanner of the Regulators as the first document which represents your business and your Token. It is therefore critical that the information presented in the White Paper reflects your business in a correct and legally compliant manner.
The team of experts at Empire Global ensures that your White Paper reflects your business and Token correctly by:
- Evaluating the structure of your Token and business model and suggesting corrections
- Providing insights into designing and presenting a legally compliant business model
- Analyzing the compliance of token distribution and sale models provided in the White Paper
- Ensuring that the information provided in the White Paper including about KYC, dealing with securities and compliance with the exemption is correct.
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 which 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 the regulator about any suspicious activities or clients
- Ensuring that the AML/KYC Policy is implemented according to legal requirements
Marketing & Broker-Dealer Issues
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.
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.
ATS Registration
An Alternative Trading System (ATS) is an exchange under law but is exempted from registration owing to an exemption under Exchange Act Rule 3a1-1(a). The ATS must, however, comply with Rules 300-303 of Regulation ATS. An ATS must first register as a Broker-Dealer and then also file an initial operation report with the SEC on Form ATS before commencing operations. The SEC maintains a list of ATS on its website.
The team at Empire Global can assist you with the process of establishing and running an ATS which includes:
- Assistance in registration as a Broker-Dealer and as an ATS
- Designing the necessary business and operations plan
- Creation of AML/KYC Policies
- Assistance in the recruitment of qualified professionals for running the operations
- Assistance in the recruitment of qualified professionals for running the operations
- Registration in all US States and Territories
- Assistance in the submission of the necessary documentation with regulators