How to do an ICO in Singapore
Ressos is the only international law firm in Singapore with an exclusive focus on blockchain/cryptocurrency, tokenisation and Initial Coin Offerings (ICO). Our extensive deal experience covers the full range of ICO projects, from straightforward utility tokens to asset-backed and other security tokens.
What is an ICO?
An innovative fundraising method for companies based on blockchain and cryptocurrency technology. It is a process whereby a company generates and sells its own tokens on a digital blockchain, in exchange for payment in fiat money or digital currencies (e.g. Bitcoin, Ethereum). The funds raised through an ICO are often applied to a specific project, such as software development, but can also be used for general financing purposes. The lack of equity dilution, as well as other factors, make an ICO an attractive alternative to venture capital investments.
In exchange for their contribution, investors receive newly-issued tokens which may be linked to dividends, voting rights, software licenses, or other property rights such as the entitlement to benefit from the future performance of the token issuer, or simply the right to use the blockchain ecosystem built by the Issuer. At its core, a digital token is a specialised means of exchange, and often a storage of value.
We have considerable expertise in Singapore ICO/STO matters and are currently working on a large number of projects, including utility tokens, asset-backed tokens, stablecoins, tokenised investment funds and other types of securities.
In particular, we advise on whether certain token offerings will be viewed as securities by regulators internationally or whether they can be characterised as utility tokens, securities or virtual currency. Where necessary, we assist clients by helping them to achieve compliance with applicable securities law and regulation.
We offer a "one-stop" full service solution for all legal, tax and corporate services aspects of an ICO/STO in Singapore or Hong Kong, as well as offshore jurisdictions. We have notable experience in the structuring and implementation of hybrid structures involving a token issuer in Singapore, and an underlying fund structure in offshore jurisdictions such as the Cayman Islands. Our expertise extends to the use of charitable and non-charitable trusts or other entities for orphaned (foundation-like) structures, as an alternative to the traditional 'company limited by guarantee' setup.
Where required by local regulation or specific client requirements, we work in conjunction with Singapore advocates and solicitors, tax consultants and other services providers. We have strong relationships to specialised consultancies and financial advisors, and are able to facilitate fundraisings and capital introductions.
Fees and cost
Our fee structure is value-based and broken down into stages and milestones, with flat-fee service packages allowing for transparency and budgeting without unwanted surprises. Mixed fee structures comprising advisory fees payable in fiat money, as well as a token allocation and a success fee component are often possible (subject to legal restrictions), depending on team and project.
To discuss your ICO project, please contact us using the contact form on this website. Our client onboarding team will then send you an email with detailed information about the terms of our engagement, fee structure and next steps to discuss your ICO project.
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