Legal Opinion for ICO / STO / IEO
Legal Opinion will be necessary for any company engaged in issuing tokens (TGE). Legal Kornet specialists will analyze in detail your project, token sale, structure and features of your token from a legal point of view.
Why it is needed Legal Opinion?
- To issue on exchange markets;
- To enhance its utility and make it more secure before the regulatory authorities;
- To protect your investors;
- To be complaint with the laws you ICO/STO/IEO company is a resident.
The legal opinion prepared by a highly qualified specialist regarding the nature of the token will allow the project creators, investors, as well as token holders and ecosystem users to obtain a competent expert opinion on the legal nature of the token within a specific project.
The Legal Opinion prepared by our company Legal Kornet is signed by a licensed U.S. attorney. Our Legal Opinion is accepted by all cryptocurrency exchanges, including Binance — one of the largest international online digital currency exchange services.
Advantages of a US Legal Opinion
- Gold standard for most of the Jurisdictions
United States security law is a high standard for legislation in other countries. Preparing the Legal Opinion by NY Attorneys removes the need for drafting legal memorandums in any particular jurisdiction you are distributing the tokens to. - Credibility
American Legal Opinion in your hands grants your project with credibility before regulatory bodies of the jurisdiction you are launching the ICO. Besides that it makes your project more safe, prestigious and attractive for you and your future investors. - Trust of US SEC
It does not matter weather you sell token to US residents or not (or you merely believe you do not sell to US residents). Besides that, you should never forget that once you have even one investor from the US you are at risk of being suspended by SEC or any other American regulatory bodies. - Access to Exchange Markets
It is not likely that even small exchange markets will accept non American Legal Opinion. One of the reason is the lack of a trust to such attorneys and another is simply that only US attorneys may advise on American law and Howey Test in particular.
For a successful and safe implementation of the ICO / STO / IEO project, the Legal Kornet team:
- Conducts a comprehensive analysis of the project structure and its documentation;
- Makes a legal opinion on the nature of the token, guided by the criteria of the Howey Test;
- Identifies the risks that exist within the project.
Howey Test
The Howey test is a test developed by the US Supreme Court, which is used to characterize individual transactions as investment contracts.
Today, Howey Test is actively used in the ICO / STO / IEO sphere to determine the nature of a particular cryptocurrency.
Howey Test allows the project organizers to answer the main question: will the tokens issued by the platform qualify as securities under US law?
According to Howey Test, a token is a security if the project (platform) has:
- Investment of funds in the project;
- Investments will be made in a common enterprise;
- One of the main goals of investors is - the expectation of profit from the project.
If the Howey Test gives a positive result, then the project tokens qualify as securities. In this regard, the organizers and investors of the project will be obliged to comply with the requirements of the legislation on securities. For example: (the law "On securities" of 1933, "On the exchange of securities" of 1934).
