Choosing a Token-friendly Country and Registering a Token Company
Stage 3. Token Initial Issuance and Distribution
What’s the purpose of this task?
You will need these legal works to create a SPV, which will enable you to sign SAFTs before the tokens are issued and to structure the token distribution after the tokens are issued.
While choosing a token-friendly country, the best options are usually one of these 6 jurisdictions. Click the button below to view and compare these countries.
Why do I need to complete this task? What will it allow me to do?
This will help you to:
• Define which countries offer the most friendly regulations for your type of token
• Create
an SPV (special purpose vehicle) the main goal of which is to cover the process of initial token
issuance and distribution
• Separate the risks of regulatory uncertainties, which exist in
the Web3 industry, from the Dev Lab company, which is an owner of IP
When do I need it? When is the best time to do it?
When starting to prepare for a token-related investment round.
How should I do it? Are there any best practices?
Based on the legal type of token, jurisdictional analysis should be conducted to discover which is the most friendly country for your chosen token type. Among the criteria for choosing the right country it is also recommended to take into account the existence of Token Regulatory Guidances and special Virtual Asset Service Provider regulations in certain token-friendly countries.
What’s important to remember for this stage?
As the Token company is a SPV (a temporary company), it might be easier to register it in the form of an LLC. However, some SAFT investors might require equity of this company to take some control over the process of token issuance and distribution. In this case a limited company with a shareholding structure might work better.
How much time does it usually take?
This depends on the country chosen for Token Company registration. This can usually be completed within 3 to 6 weeks, however actual times vary depending on individual project requirements.
Prices for this task start from USD $3000
Prices for add-ons are indicative only. Final prices vary and are set by service providers from the Legal Nodes Network.
Add-ons are only available with a monthly plan from Legal Nodes.
Legal Nodes does NOT provide legal services. Instead, we provide Virtual Legal Officers to orchestrate your legal workload and manage relationships with your service providers. Plans start from $499 per month and gives you access to the Legal Nodes Network of service providers and add-ons, including this one!
