ICOs

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By Rudolf Haas and Urszula McCormack King & Wood Mallesons’

The growing number of token sales or “Initial Coin Offerings” (ICOs) has prompted the German Federal Financial Supervisory Authority (BaFin) to issue a “consumer warning” on November 9, 2017. BaFin also elaborated on its position in the November edition of its monthly “BaFin-Journal”, published on November 15. In a separate, but almost contemporaneous publication, the European Securities and Markets Authority (ESMA) also took a stance.

Overall, these were balanced statements that signalled a strong “buyer beware” message, but also implied a certain level of tolerance for properly issued ICOs. The regulators made clear that their approach is a careful case-by-case analysis.
Continue Reading German BaFin and ESMA clarify their stance on ICOs

By Scott Farrell, Urszula McCormack, Stanley Zhou  King & Wood Mallesons

ICOs sell blockchain tokens (or coins)…

A token is an intangible asset stored on a blockchain which entitles a token holder to a bundle of rights (and possibly liabilities) set out in smart contracts and other relevant documentation (such as an offering document or a whitepaper).

… in a way like IPOs …

ICOs are inspired by IPOs. Like an IPO, tokens which have not been available to the public previously are generally offered to raise a set amount of funds, within a defined period of time. Once purchased, the token may be able to be traded on exchanges accessible by the public.
Continue Reading 10 things you need to know about Initial Coin Offerings (ICOs)

By Scott Farrell Urszula McCormack and Stanley Zhou  King & Wood Mallesons

1. ICOs sell blockchain tokens (or coins)…

A token is an intangible asset stored on a blockchain which entitles a token holder to a bundle of rights (and possibly liabilities) set out in smart contracts and other relevant documentation (such as an offering document or a whitepaper).
Continue Reading 10 things you need to know about Initial Coin Offerings (ICOs)