FAQs

SAFT OR NO SAFT

A Simple Agreement for Future Tokens is framed as an investment agreement and in a number of jurisdictions may require licensing or registration of the investment to be compliant.

WHY DO I NEED A LICENCE TO RAISE MONEY FOR MY OWN BUSINESS

It is true that raising funds by selling shares in your own company does not necessitate licensing in a number of jurisdictions however that typically only applies to shares in a company or a debenture. This is not the case with other investment instruments.

WHY REGISTER A COMPANY AND APPLY FOR A LICENCE TO DO AN ICO?

There is a lot of legal uncertainty with ICOs and it is important to give transparency to your backers and certainty for your business. At Diacle we always assist businesses to conduct ICOs in regulated jurisdictions. The Isle of Man requires issuers or tokens to be registered under the Designated Business Act.

WHAT IS THE REGISTRATION PROCESS IN ISLE OF MAN

We would first obtain a legal opinion for you from local counsel about your token to ensure that it was not defined as an investment. Based on that opinion we would apply for the licence. The licence would entail a fit and proper test, evaluation of the token and requirement to comply with due diligence processes in relation to the sale of the token.