Legal opinion is a detailed written consultation on the aspect of activity or certain question of a client.
The document is required to evaluate or assess a project from a legal point of view.
Legal opinion for ICO: purpose and preparation
In order to hold an ICO it is necessary to:
- Determine legal structure of a token.
- Sel ect an appropriate jurisdiction.
- Solve the issues of taxation.
- Compile the following necessary documentation:
- Token Sale Agreement;
- Terms of Conditions;
- Private Policy;
- AML (Anti-Money Laundering) Policy.
AML policy describes the actions of a project team and aims to counter money laundering and terrorist financing.
Law&Trust will prepare a professional legal opinion for ICO. We guarantee that documents provided by a client and legislation will be studied in detail in order to give a complete, comprehensive and correct conclusion on particular question posed.
Terms of drafting a legal opinion are affected by the efficiency of a mechanism of work of a lawyer engaged in its preparation. If several jurisdictions and foreign partners are involved, a proven mechanism is an important indicator of the competence and professional integrity of a legal company in preparing a legal opinion for Initial Coin Offering.
Main stages of preparing a legal opinion for ICO (TGE):
- Background. This stage involves studying information on a project, its concept, jurisdictions proposed by a client and his/her requests.
- Part of examination and review. Provided documents are examined, and additional information is collected to prepare above document. We examine all the materials received, send inquiries to the competent state bodies that regulate ICO, and compare the project concept in the context of compliance with relevant profile legislation.
- Summary. As a result, we provide a detailed answer as to what are the risks of a project, how to avoid them, how to adjust and change the documents of a project. You receive a full-fledged qualitative legal opinion for TGE (ICO), that means conclusions based on the norms of legislation, judicial practice, positions and statements of a regulator, official press releases, etc.
What legal opinion can be prepared for TGE
By contacting Law&Trust, you can order not only legal advice, but also compiling a legal opinion, as well as supporting an ICO project.
Types of legal opinion for Token Generation Event:
- "On legal essence/nature of a token". Providing this type of legal opinion for TGE (ICO) involves studying the proposed concept of a token, its functionality, in order to anticipate possible consequences and risks of choosing this concept. Pay attention that selection of the model of legal essence/nature of a token directly affects the entire further scheme of project implementation. To assess legal nature of a token, we also analyze the methods of issuing tokens, volumes, means of converting tokens into fiat currency, options for using tokens, and other factors.
- "On Jurisdictions". The country for launching an ICO can be Singapore, Switzerland, Hong Kong, Malta, Gibraltar, Estonia, the United States, as well as the EU countries. Lawyers of Law&Trust International can prepare a legal opinion for TGE in any jurisdiction. At the time of providing this legal opinion, such factors as residence of a founder of a company, peculiarities of a legal status of ICO in jurisdiction and characteristics of a token as a whole will be taken into account.
- "On implementation of a project”. Structure of a project, method of money flow, as well as conversion transactions (fiat - cryptocurrency) are described.
- "On taxation”. Tax burden is optimized. Certain rates in jurisdictions are taken into account depending on the structure of a business. Availability of tax incentives and other methods of tax burden optimization are analyzed. Existence of double taxation agreements is checked.
Legal opinion for TGE will be necessary for any company engaged in issuing tokens. Specialists working in the field of ICO and TGE will analyze particular project, token sale, structure and features of certain token from a legal point of view.