Category: VFA Act

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Is blockchain technology vital for ICOs to function?

Categories Blockchain, Cryptocurrency, ICOs, Malta, ICO Legal Service, E&S Group, Technology, Tokenomics, Advisory, Tokens, Utility Tokens, Security Tokens, Ethereum, VFA Act, ESTS Initiative

Is blockchain technology vital for ICOs to function?

Every Initial Coin Offering (ICO) works by means of blockchain technology. Subsequently, blockchain is the source that issue tokens, trade cryptocurrencies and aid miners to operate the platform. This technology is combining many industries both private and public to use this advanced system of collecting data.

ICOs and Tokens

Although blockchain can function on its own, it is widely used by ICOs. Many companies and startups are moving towards a blockchain era of things. A surge of investors are spending their money on various projects and digital currencies that are exceeding the market cap by trading volume. However, most ICOs issue their cryptocurrency by means of tokens. In reality, ICOs are projects that are designed by founders offering a service to their followers. Most companies opt for a blockchain based ICO to remove any third parties. Money needed to start off the project is collected by means of crowdfunding. Tokens, another word for cryptocurrencies are issued to whoever funds and supports the initiative.

What will happen when ICOs reach their Soft cap and Hard Cap?

During the Virtual Financial Assets (VFA)  offering stage, ICOs invest in their marketing projects to attract more investors. During the VFA offering process, ICOs would need to reach their soft cap and then the estimated hard cap. When the VFA offering ends, every ICO takes a different path. Some of the currencies end up on the market cap, trading their tokens with other cryptocurrencies while others continue with their intended project.

Blockchain a decentralised platform.

Blockchain is a decentralised platform for storing data. This new technology is becoming an important platform for processing transactions. Every transaction is verified by means of computer nodes connected to each other. Besides Bitcoin, new blockchain based cryptocurrencies started to take over the market. One of the most popular blockchain platform by far is the Ethereum platform. Created by Vitalik Buterin, the Ethereum platform has become the ideal platform since it is easy to set up. The Ethereum platform works via smart contracts. These digitalised contracts work to facilitate, verify or enforce the negotiation or performance of a contract. Meanwhile, these contracts eliminate the use of third parties. The majority of ICOs tend to use the Ethereum platform for smart contracts.

Legal advice to ICOs.

Despite the fact that ICOs require blockchain technology to work, legal advice is of the utmost importance. Signing up your ICO in a progressive jurisdiction such as Malta would help the project reach its final stages. An interdisciplinary firm based in Malta, E&S Group, offers an array of services assisting ICOs from their concept stage up the actual offering. Advisory service offered to prospective ICO clients are blockchain, tokenomics, taxation, and opening a Malta company, to name a few. To date, E&S Group has successfully advised over 40 ICOs, all reaching their hard cap.

Now is the chance to set up your dream ICO project in Malta. E&S Group will help you achieve your dream. For further information regarding our ICO Legal Service please click here.  Or contact us on +356 2010 302  or by email on [email protected]

If you have an upcoming ICO and would like to take part in ESTS Seed Competition, please follow this link to know what is required of you to participate.

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The MFSA published a Consultation Paper on Regulations under the VFA

Categories Malta, Law, E&S Group, Technology, Regulation, MFSA, VFA Act

The MFSA published a Consultation Paper on Regulations under the VFA

 

A consultation paper has been published by the MFSA proposing Regulations under the (VFA) Virtual Financial Assets Act. The report published on the 4th of July stated that since the Bill has reached its final enactment stages, the MFSA started drafting the legal notice setting out the regulations. The Authority addressed the following regulations being, exemptions, fees, control of assets and administrative penalties and appeals.

Through this consultation paper, the MFSA is seeking a constructive feedback from the industry regarding the draft regulations, the Virtual Financial Assets Regulations which will be issued under the Act. The aim of these regulations is to maintain financial stability, thus promoting market integrity and ensure the protection of the investor.

The MFSA Consultation Paper on Regulations under the VFA Bill goes public from July 4th until 20th July 2018.

 

If you would like to know more about the ICO Legal Services please contact us directly on +356 20103020 or by email at [email protected]  or by following this link.

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