Cryptocurrencies are calling into question the boundary lines between securities and new investment models.
Our attorneys are prepared to aid businesses as they evaluate if, or how to, interact with Tokens or Coins.
Cryptocurrency Strategies for Business
Our cryptocurrency experience includes consulting and strategy development with major banks and other financial institutions. We can help these and other businesses develop scalable and organization-wide responses to questions such as:
- If a customer wanted to pay an invoice with Bitcoin, how would you react?
- If a vendor wanted you to sign a "smart contract," who would be involved in negotiating those terms?
- Does your company have privacy, information security, anti-money laundering, or anti-terrorism concerns related to cryptocurrency or blockchain?
Blockchain Based Initial Coin Offerings
While regulators in the U. S. and around the globe struggle to update rules to catch up, businesses are raising billions of dollars in Initial Coin Offerings (ICOs) which compete with traditional venture capital firms as a primary source of growth capital. We have been involved with the development of ICOs and related financing mechanisms, such as token presales (e.g., SAFTs) and blockchain-based tokenized security offerings designed to comply with existing crowdfunding regulations.
Public Sales Efforts Require Communications Experience
New sales communications tools are enabling a wider range of people to invest in non-public businesses. Our experienced attorneys provide guidance on capital raising campaigns that are simple to understand and comply with securities laws. We work closely with the organizations to help ensure compliance with securities law while not interfering with the campaign message.
Cryptocurrenty and Taxes
Currently, sales of Coins that are not securities result in taxable income. Our attorneys are familiar with the applicable Money Transfers and Anti-Laundering Laws, and are able to advise clients on wealth distribution that stay within the law. Selling cryptocurrencies must be structured to avoid violating money laundering laws during a regulated activity.