Question 1

💼 Howey Test

Accepted Answer

A blockchain startup approached us for guidance on U.S. regulations for their utility token launch. Amid concerns about regulatory pitfalls, we conducted a Howey Test analysis and identified potential security-related risks. Our recommendations included refining token attributes and educating investors. The startup opted to delay listing, ensuring compliance and mitigating penalties. This decision stands in contrast to CoinTech, fined $5 million by the SEC for misclassifying their utility token. Our guidance safeguarded the startup, underscoring the importance of accurate token classification in regulatory adherence.

Question 2

💼 Cayman Islands Foundation

Accepted Answer

The development team wanted to create a DAO but faced legal uncertainty. Our lawyer pointed out the need for a well-designed structure to ensure the protection of funds and transparency of the DAO. Against the advice of another law firm to choose Singapore as the jurisdiction, which had previously taken a friendly stance towards blockchain projects, we suggested setting up the fund in the Cayman Islands. This choice was based on adaptable legislation, competent regulation of virtual assets and cost-effectiveness. As a result, we set up the fund in the Cayman Islands, optimized the business model and carefully prepared all the necessary documentation, providing developers with a solid foundation to operate in the dynamic blockchain sphere, taking into account the potential impact of changing regulatory constraints.

Strategically setting up a fund for the DAO in the Cayman Islands instead of the alternative proposal of setting up a fund in Singapore gave us significant advantages. Our choice allowed us to reduce costs by approximately 30%. In addition, the flexibility of the Cayman Islands jurisdiction allowed us to streamline operations, which helped reduce administrative overheads by approximately 20%. Overall, our decision not only mitigated potential regulatory risks associated with evolving restrictions in Singapore, but also saved money by providing a solid and sustainable foundation for their blockchain project.

Question 3

💼 Drafting token sale contracts

Accepted Answer

Many of the clients we have worked with have needed careful drafting of token sale agreements, a crucial aspect of the cryptocurrency ecosystem. A properly drafted agreement not only defines the rights and obligations of the issuer and buyer of tokens, but also ensures their protection. Different projects - from SAFT and SAFTE to token warrant agreements and side letters - require separate contracts to suit their unique purposes. Our team will review your project, determine your needs and the type of contract that is best suited to accomplish a particular goal.

Through our expertise, we crafted a robust SAFT for a blockchain startup. Despite an enticing $500,000 offer from an investor, our comprehensive due diligence unveiled their questionable history. Our carefully constructed SAFT prevented potential manipulations, safeguarding our client from risks and securing their project's integrity. In the ever-evolving blockchain landscape, success is often about not just earning, but also about not losing what's valuable.

Question 4

💼 Regulatory compliance. MiCA

Accepted Answer

A fintech startup looking to enter the European market found it difficult to understand the MiCA rules to be implemented across the EU. Contacting our team, they asked for clarification on the harmonized approach to cryptoasset markets. Thanks to our detailed guidance, the startup successfully navigated the MiCA system, positioning itself favorably in the EU market and ensuring full regulatory compliance.

Question 5

💼 SPV for token issuance

Accepted Answer

A technology startup was planning to issue a unique token, but faced regulatory problems in different jurisdictions. Looking for an efficient business structure, they contacted our firm. We recommended the British Virgin Islands (BVI) for setting up a Special Purpose Vehicle (SPV) company due to its favorable legislation. Based on our experience with BVI law, we promptly established the SPV, ensuring compliance with regulatory requirements and minimizing potential risks in the issuance and distribution of tokens.

We help Crypto, Blockchain and Web3 projects with legal issues all over the world

Services

Legal classification of tokens with Howey Test

Selection of services providers for KYC / AML procedures

Tax advices for international or local businesses

Assessment possibility of token turnover on Dex

Drafting of documents for a blockchain project (public offer, privacy policy, white paper, etc.)

Intellectual property protection

Building the organizational and legal structure of blockchain projects. Select jurisdictions, registration of companies (including DAO)

Legal risk assessment of a project entering a new market (specific jurisdiction)

Development of a legal strategy to attract investment, such as using the SAFT Agreement

Consultations on regulations of SEC, FINMA and other regulators

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What you get by contacting Icon.Partners?

Comprehensive service

You get a full legal business audit, solution of any legal issues, strategic planning

Quality assurance

We work according to international standards. Several senior lawyers are always responsible for the final result, even if one senior lawyer is assigned to communicate. The advice validation system is our trump card

Clear communication

A personal manager is always in touch and provides monthly reports. Project

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