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 Urszula McCormack, Heidi Machin, Lauren Dray, Jack Nelson, Marina Lauer, Hannah Glass and Henry Wells King & Wood Mallesons

Token sales are rapidly gaining momentum as the darling of capital raising in the digital economy. Huge sums have been raised; some tokens have experienced skyrocketing valuations; many believe no regulation applies. This has caused a strong “fear of missing out” effect among those looking to get involved in this rapidly growing space.
Continue Reading “Know Your Token”: A guide to participating in token sales