The current volatility in the currency exchange market has made investing in cryptocurrency a common investment strategy. Cryptocurrencies, however, are a little like ships in international waters: the rules and regulations governing them can be confusing.
ICO and STO attorneys can help you securely manage your cryptocurrency investments to make sure you stay legal and safe.
An Initial Coin Offering (ICO) is akin to buying equity in a company before it goes public. Because ICOs have a pattern of fluctuating tempestuously, you need to make sure you have strong legal standing regarding the valuation of your crypto investments in a new e-currency.
- LLC: to limit your liability in a new currency, it is important to pay attention to where and how the ICO is incorporated. If the ICO is labeled an LLC, your initial investment is the limit of your liability. Furthermore, if the ICO incorporated in a country like Switzerland, Macau, Costa Rica, or Albania, legal limitations will help keep your investments anonymous and secure. This information is often overlooked by cryptocurrency investors. Retaining the services of an experience ICO law firm will ensure that you know exactly what you're signing up for before you commit any capital to an ICO. Your lawyers will also help you avoid scammers looking to take your money and hide behind lines of computer code.
A Security Token Offering (STO) can yield massive profits, but also carries some inevitable risks. An STO lawyer can help you stay one step ahead of the crowd by making sure your STO is compliant and transparent.
- Legit: because cryptocurrency has the potential to facilitate all manner of nefarious transactions, most countries mandate some level of transparency. Because STOs are often brought and sold hundreds of times per minute by electronic trading programs, you'll need someone to help you maintain a digital paper trail for tax and regulation purposes. Your STO lawyers can allocate forensic accounting specialists to help you keep track of where your cryptocurrency investment dollars are going. This digital record can be used for tax purposes and filed with the SEC and other regulatory bodies that might audit your investment activities. Your STO lawyers will also help protect your privacy by only sharing information mandated by regulators and other jurisdictions with the power to subpoena your financial records. Sometimes, sharing too much information can create problems that can trigger serious investigations.