Security Token Offering Legal Handbook for Start-Ups
Legal Nodes Team
Legal Nodes is proud to present its first Legal Handbook for Startups, dedicated to Security Token Offerings (“STOs”). It covers the legal status of security tokens, STO-friendly countries and the ecosystem, surrounding the issue and trading of security tokens.
After months of diligent research, our team has put together all relevant regulatory and market information, to help blockchain businesses, aspiring to raise funds via STOs, do so in a legally and compliant manner utilizing our guide.
By studying market data and blockchain regulation all around the world, we have:
1) Identified four legal models of security tokens: equity tokens, debt tokens, asset-backed tokens, and crypto derivatives;
2) Mapped the process of issuing security tokens from a legal standpoint, that commences with identifying the legal nature of a token, and ends with listing tokens on exchanges, enabling their secondary trading;
3) Identified seven blockchain-friendly jurisdictions with exemptions from requirements to publish a prospectus (investors qualification, “small offers”, denomination and consideration requirements etc.);
4) Explained the legal status and functions of security token platforms, trading platforms, and custodians, including examples of already functioning platforms and licensing requirements on a global scale;
5) Analysed traditional stock exchanges that aim to branch into blockchain assets.
In addition, we have interviewed key market players and legal experts in the blockchain sphere from the U.S., the UK, Germany, Malta, and Hong Kong for practical tips on the STO compliance process both from legal and tech standpoints.
You can find a full version of the Legal Handbook here:
We would highly value receiving your feedback and comments at firstname.lastname@example.org to improve our future handbooks and reports.
Previously we have published an article with 10 key takeaways from our panel discussion on “How to Conduct a Security Token Offering Legally.”
Disclaimer: the information in this article and the Legal Handbook is provided for informational purposes only and is not legal advice, or any other type of advice. Some unofficial translations of regulatory provisions are referenced in the Handbook. Legal Nodes cannot and does not intend to guarantee that the information given in the Handbook will coincide with the position of the regulatory authorities. Information provided in this Handbook may not be complete. This Handbook is not an offer, nor the solicitation of an offer, to buy or sell any of the assets mentioned herein. This Handbook is intended for non-commercial use only and belongs to Legal Nodes Ltd.
Legal Nodes Team