Security Tokens in Europe for Issuers and Trading Venues

This note asserts that Security Tokens are technical innovations of regulated securities and that they would be formally defined under EU law as Transferable Securities. The note states that centralised (where the control of the Security Tokens is with the Trading Venue rather than the participants) Security Token exchanges would be regulated, but it is unclear if decentralised markets will be. Lastly the note states that some ‘unconventional’ Security Tokens (defined as instruments that are not strictly defined under MIFID or Prospectus Directive) may be captured under Alternative Investment Fund Manager (AIFM) or local interpretation of EU definitions. 

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Gabriele Teodoro
Security Token Offering (STO): analysing the process of issuing security tokens.

This note intends to illustrate the whole process and time-frame of launching a Security Token Offering (STO). An STO represents a cheaper and more accessible way of raising funds for companies than a traditional Initial Public Offering (IPO). Applying the blockchain technology and smart contracts to capital markets would allow founders to tokenise any type of asset compliant with all regulatory requirements; hence, investors would also benefit from having newer financial products and flexible compliance. After a brief introduction to the concept of an STO, this article also highlights the most valuable reasons for issuing security tokens.

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John Thompson
What is an Equity token?

Token classification is an important consideration when launching your offering because whether a token is an equity or debt security, or utility determines how it is both regulated and treated within the issuing jurisdiction.

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Gabriele Teodoro
Isle of Man ICO Test

Is my ICO a security or not? That is the question. Obviously not a line from a Shakespearean tragedy but it could become a tragedy if you get it wrong. 

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AB
EU Compliance Guide

EU digital currency compliance first involves Anti-Money Laundering compliance. Regulations are changing from 2017 – exchanges and custodians will need to be compliant.

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AB
Isle of Man ICO Test

Is my ICO a security or not? That is the question. Obviously not a line from a Shakespearean tragedy but it could become a tragedy if you get it wrong. 

Read More
AB