Legal support of ICO and blockchain projects

Nowadays raising funds in the form of crypto-currency by means of ICO (Initial Coin Offering) is becoming an innovative way of investment.

In spite of the fact that this realm is scarcely regulated, there are still some legal mechanisms available in the Russian and foreign jurisdictions that can be applied in such investment projects.

Law firm PARADIGMA devotes attention to the development of ICO market and blockchain technology and consider it a perspective industry existing at the junction of IT-technology, finances and law.

We are ready to provide a full legal support to ICO projects including the services on:

  • Choosing an issuing company and an operating bank

Analysis of the project and drafting legal opinion concerning preferable jurisdictions where crypto-currency operations and opening of the bank account are authorized.

  • Drafting required legal documents

Drafting required documents to provide legal frameworks of the case, including the text of a public offer that will be posted on a project’s website, general terms of a project, nondisclosure agreement and other legal documents essential for investment (White Paper, Token Purchase Agreement, Privacy Policy, Terms of Use).

  • Tax consulting

Development of measures to decrease tax risks and tax burden of an issuing company, founders and investors with due consideration of CFC (controlled foreign company) regulation.

  • Development of compliance measures for an issuing company

- Development of measures reducing the risk of recognising tokens as a security in accordance with the applicable legislation;

- Development of measures to reduce the risk of breach of the legislation on combating the legalization of funds obtained by criminal means and the financing of terrorism;

- Development of AML/ KYC project policy in accordance with the legislation of ICO-executing state;

- Development of measures to reduce risks of breach of the legislation on combating illegal financial activity;

  • Drafting investment agreements

Drafting investment agreements and other legal documents required.

  • Preparation of a shareholder agreement and profit sharing mechanism between different stakeholder groups

Drafting of a shareholder agreement in accordance with the task of the project initiator, development of a mechanism for distributing the profit received as a result of the implementation of the investment project.

  • Development of a system of measures aimed at minimization of the risk of personal liability of CEO and project initiator

Preparation of recommendations regarding the choice of jurisdiction for registration of the company that will provide minimal legal requirements on disclosure of information about beneficial owners and company’s financial information.

Development of a corporate structure in accordance with the existing regulation of controlled foreign companies, the requirements of PSC, FATCA, etc., in accordance with the residence of the CEO and the beneficial owners.

  • Dispute litigation in cases involving ICO projects

Representation of the client’s interests in the courts of any jurisdiction in legal disputes related to the ICO. Paradigma lawyers can develop an arbitration clause, offer the preferred applicable law and the jurisdiction of the dispute.

  • Escrow agent services

Our company can act as an escrow agent or carry out the search for an intermediary which will serve as a guarantor of the transfers of funds during an ICO transaction.

We are delighted to offer above-mentioned legal services in relation to ICO projects. Due to our wide experience in dealing with foreign jurisdictions, having a broad international partners network and cooperation with foreign banks and organisations we are capable to deal with the project as a whole. Consequently, there is no need for our clients to hire various legal consultants on this matter.