Tokenizing up to 5m € without prospectus?
Dec 16, 2021
ECSPR recently launched its new crowdfunding regulation which could be a great alternative for tokenized offerings. You would require an A4 Issuing Factsheet based on ECSPR which would enable you to issue a token up to 5m euro within the European Union.
So if you are thinking about tokenizing your equity or issuing any other financial instrument like a bond, convertible debt this might be very interesting for you. Now the question is it worth it to do all of this either from scratch alone or with a trusted partner?
we believe it's a simple yes, that's actually how our vision about the rapid capital allocation for promising opportunities came into life in 2016.
Before you were limited to 1m Euro which you could place to the public with the disclaimer “Pursuant to Art. 1 para 3 of Regulation (EU) 2017/1129, this public offering of YourName tokens is not subject to the prospectus requirement.” This might have been a good option for you if you wanted to start the offering asap and test the market and parallel maybe issue another token of up to another 9m Euro where the prospectus had to go through the local financial market authority.
We used this for one of our projects where a bond was issued. So ultimately it comes down to what your goal is, we summarized the parameters that you need to consider to start your tokenized offering:
Which jurisdiction are you in?
Please note if it's Liechtenstein you can issue a token up to 5m Euro if it's not a public offering without the need to be registered as the token issuer. This is worth noting as maybe the jurisdiction you are in offers a similar legal certainty to the token economy like Liechtenstein does with their “blockchain law”
What will be the offering size?
If you exceed the 5m threshold don't panic, there is still a very good solution for you if you are a company within the European Union and you wish to issue a tokenized bond over 5m Euro you can choose your passporting jurisdiction, in this case, it could be Liechtenstein and we are more than happy to help you do so. If you wish to issue through your local financial market authority then we can provide you with EEA prospectus guideline help but for the last submission, you might need to consult your own legal advisor in this jurisdiction to then submit it to the local regulator to then also coordinate the feedback from them.
If you wish to choose Liechtenstein as your primary jurisdiction and you wish to tokenize equity you should incorporate it in Liechtenstein but then would be subject to the Token issuer role in Liechtenstein.
If you are outside of Europe you can also issue tokenized equity choosing Liechtenstein as your passporting destination to the European Union.
Who will take care of the tokenizing?
You can either choose us to tokenize your asset or you simply use a 3rd party provider like Cashlink which we integrated into our Investhub KYC SaaS so after setting up the KYC for your need you can simply issue your token through us or through any other 3rd party.
Who will take care of the management of the smart contract and token?
Based on our recent legal opinion you can either manage the Ledger Nano S yourself where the Smart Contract will be deployed to the mainnet of either Ethereum or Polygon. As an alternative, you can also provide us the delegation of management of the Ledger Nano S which we will deposit in our safe in our office in Liechtenstein. This is a huge benefit for smaller tokenizing offerings as you don't need any external partner technically to issue and manage your offering as for example our smart contracts allow the allocation of manager roles which could be your Metamask wallet from either your work laptop or a dedicated device which is only managing the token allocation from the smart contract to the investor wallet.
Who will provide any other legal help in case there are inquiries from local financial market authorities?
We are very happy to help in any case, even when you are just signing up for our smallest KYC SaaS package of 39 CHF. We would then just invoice the time needed on a monthly basis, we do this with our legal partner Dr. Scheiber
So what if you want to start your tokenized journey?
Either sign up directly at investhub.io for your compliant investor onboarding tool where you can start onboarding your investors after 3 minutes, accept payments for your tokens, and issue a token as well.
then, if you are unclear how you want to structure your financial instrument and you need a mix of education and legal advice get in touch with us and we are more than happy to jump in a discovery call or meet up for coffee/lunch either in Liechtenstein or Singapore depend where are at that point of time.
PS: We usually pick up the tab on our first meeting even when you are not converting with us.
Telegram: marchello
Whatsapp: +65 86 48 13 41
Phone Singapore: +65 86 48 13 41
Phone Liechtenstein: +423 797 86 81
Email: marcel@investhub.io
Tokenizing up to 5m € without prospectus?
Dec 16, 2021
ECSPR recently launched its new crowdfunding regulation which could be a great alternative for tokenized offerings. You would require an A4 Issuing Factsheet based on ECSPR which would enable you to issue a token up to 5m euro within the European Union.
So if you are thinking about tokenizing your equity or issuing any other financial instrument like a bond, convertible debt this might be very interesting for you. Now the question is it worth it to do all of this either from scratch alone or with a trusted partner?
we believe it's a simple yes, that's actually how our vision about the rapid capital allocation for promising opportunities came into life in 2016.
Before you were limited to 1m Euro which you could place to the public with the disclaimer “Pursuant to Art. 1 para 3 of Regulation (EU) 2017/1129, this public offering of YourName tokens is not subject to the prospectus requirement.” This might have been a good option for you if you wanted to start the offering asap and test the market and parallel maybe issue another token of up to another 9m Euro where the prospectus had to go through the local financial market authority.
We used this for one of our projects where a bond was issued. So ultimately it comes down to what your goal is, we summarized the parameters that you need to consider to start your tokenized offering:
Which jurisdiction are you in?
Please note if it's Liechtenstein you can issue a token up to 5m Euro if it's not a public offering without the need to be registered as the token issuer. This is worth noting as maybe the jurisdiction you are in offers a similar legal certainty to the token economy like Liechtenstein does with their “blockchain law”
What will be the offering size?
If you exceed the 5m threshold don't panic, there is still a very good solution for you if you are a company within the European Union and you wish to issue a tokenized bond over 5m Euro you can choose your passporting jurisdiction, in this case, it could be Liechtenstein and we are more than happy to help you do so. If you wish to issue through your local financial market authority then we can provide you with EEA prospectus guideline help but for the last submission, you might need to consult your own legal advisor in this jurisdiction to then submit it to the local regulator to then also coordinate the feedback from them.
If you wish to choose Liechtenstein as your primary jurisdiction and you wish to tokenize equity you should incorporate it in Liechtenstein but then would be subject to the Token issuer role in Liechtenstein.
If you are outside of Europe you can also issue tokenized equity choosing Liechtenstein as your passporting destination to the European Union.
Who will take care of the tokenizing?
You can either choose us to tokenize your asset or you simply use a 3rd party provider like Cashlink which we integrated into our Investhub KYC SaaS so after setting up the KYC for your need you can simply issue your token through us or through any other 3rd party.
Who will take care of the management of the smart contract and token?
Based on our recent legal opinion you can either manage the Ledger Nano S yourself where the Smart Contract will be deployed to the mainnet of either Ethereum or Polygon. As an alternative, you can also provide us the delegation of management of the Ledger Nano S which we will deposit in our safe in our office in Liechtenstein. This is a huge benefit for smaller tokenizing offerings as you don't need any external partner technically to issue and manage your offering as for example our smart contracts allow the allocation of manager roles which could be your Metamask wallet from either your work laptop or a dedicated device which is only managing the token allocation from the smart contract to the investor wallet.
Who will provide any other legal help in case there are inquiries from local financial market authorities?
We are very happy to help in any case, even when you are just signing up for our smallest KYC SaaS package of 39 CHF. We would then just invoice the time needed on a monthly basis, we do this with our legal partner Dr. Scheiber
So what if you want to start your tokenized journey?
Either sign up directly at investhub.io for your compliant investor onboarding tool where you can start onboarding your investors after 3 minutes, accept payments for your tokens, and issue a token as well.
then, if you are unclear how you want to structure your financial instrument and you need a mix of education and legal advice get in touch with us and we are more than happy to jump in a discovery call or meet up for coffee/lunch either in Liechtenstein or Singapore depend where are at that point of time.
PS: We usually pick up the tab on our first meeting even when you are not converting with us.
Telegram: marchello
Whatsapp: +65 86 48 13 41
Phone Singapore: +65 86 48 13 41
Phone Liechtenstein: +423 797 86 81
Email: marcel@investhub.io
Tokenizing up to 5m € without prospectus?
Dec 16, 2021
ECSPR recently launched its new crowdfunding regulation which could be a great alternative for tokenized offerings. You would require an A4 Issuing Factsheet based on ECSPR which would enable you to issue a token up to 5m euro within the European Union.
So if you are thinking about tokenizing your equity or issuing any other financial instrument like a bond, convertible debt this might be very interesting for you. Now the question is it worth it to do all of this either from scratch alone or with a trusted partner?
we believe it's a simple yes, that's actually how our vision about the rapid capital allocation for promising opportunities came into life in 2016.
Before you were limited to 1m Euro which you could place to the public with the disclaimer “Pursuant to Art. 1 para 3 of Regulation (EU) 2017/1129, this public offering of YourName tokens is not subject to the prospectus requirement.” This might have been a good option for you if you wanted to start the offering asap and test the market and parallel maybe issue another token of up to another 9m Euro where the prospectus had to go through the local financial market authority.
We used this for one of our projects where a bond was issued. So ultimately it comes down to what your goal is, we summarized the parameters that you need to consider to start your tokenized offering:
Which jurisdiction are you in?
Please note if it's Liechtenstein you can issue a token up to 5m Euro if it's not a public offering without the need to be registered as the token issuer. This is worth noting as maybe the jurisdiction you are in offers a similar legal certainty to the token economy like Liechtenstein does with their “blockchain law”
What will be the offering size?
If you exceed the 5m threshold don't panic, there is still a very good solution for you if you are a company within the European Union and you wish to issue a tokenized bond over 5m Euro you can choose your passporting jurisdiction, in this case, it could be Liechtenstein and we are more than happy to help you do so. If you wish to issue through your local financial market authority then we can provide you with EEA prospectus guideline help but for the last submission, you might need to consult your own legal advisor in this jurisdiction to then submit it to the local regulator to then also coordinate the feedback from them.
If you wish to choose Liechtenstein as your primary jurisdiction and you wish to tokenize equity you should incorporate it in Liechtenstein but then would be subject to the Token issuer role in Liechtenstein.
If you are outside of Europe you can also issue tokenized equity choosing Liechtenstein as your passporting destination to the European Union.
Who will take care of the tokenizing?
You can either choose us to tokenize your asset or you simply use a 3rd party provider like Cashlink which we integrated into our Investhub KYC SaaS so after setting up the KYC for your need you can simply issue your token through us or through any other 3rd party.
Who will take care of the management of the smart contract and token?
Based on our recent legal opinion you can either manage the Ledger Nano S yourself where the Smart Contract will be deployed to the mainnet of either Ethereum or Polygon. As an alternative, you can also provide us the delegation of management of the Ledger Nano S which we will deposit in our safe in our office in Liechtenstein. This is a huge benefit for smaller tokenizing offerings as you don't need any external partner technically to issue and manage your offering as for example our smart contracts allow the allocation of manager roles which could be your Metamask wallet from either your work laptop or a dedicated device which is only managing the token allocation from the smart contract to the investor wallet.
Who will provide any other legal help in case there are inquiries from local financial market authorities?
We are very happy to help in any case, even when you are just signing up for our smallest KYC SaaS package of 39 CHF. We would then just invoice the time needed on a monthly basis, we do this with our legal partner Dr. Scheiber
So what if you want to start your tokenized journey?
Either sign up directly at investhub.io for your compliant investor onboarding tool where you can start onboarding your investors after 3 minutes, accept payments for your tokens, and issue a token as well.
then, if you are unclear how you want to structure your financial instrument and you need a mix of education and legal advice get in touch with us and we are more than happy to jump in a discovery call or meet up for coffee/lunch either in Liechtenstein or Singapore depend where are at that point of time.
PS: We usually pick up the tab on our first meeting even when you are not converting with us.
Telegram: marchello
Whatsapp: +65 86 48 13 41
Phone Singapore: +65 86 48 13 41
Phone Liechtenstein: +423 797 86 81
Email: marcel@investhub.io
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