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Blockchain & ICO

"ICO regulation, taxation and legal setup" Workshop by PwC

by Administrator, on Jul 12
The team of PwC has talked about pros and cons of doing ICO funding, the main stages of developing an ICO, etc.
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 At Blockchain Leadership Summit on March 9, 2018 “PwC” made a workshop “The compliance taxes regarding Blockchain and ICO”. The team of PwC has talked about pros and cons of doing ICO funding, the main stages of developing an ICO, types of Tokens defined by FINMA (Switzerland) and tax consideration in Switzerland related to token economy. We present you a summary of the workshop to share with you the information about launching your ICO project in Switzerland. Read below

Key advantages of ICO (compared to IPO or others financing means by equity):

  1. Effective – ICO is quicker than an IPO
  2. With the ICO you do not dilute the current equity stake in your company  
  3. You can build an ecosystem using your token
  4. ICO is a good marketing tool                                                                                                                                                           

Disadvantages of ICO:

  1. There is certain uncertainty in most jurisdictions around the world in how tokens are effectively qualified (in Switzerland, there is a guideline to conduct ICO, which gives description of different categories of tokens).
  2. Types of tokens are not defined.
  3. Your ICO can be hacked.
  4. Tax treatment is unclear.

Project timeline of ICO:

 

Business strategy

Token Utility and Economy Design

Detailed planning

Sales execution

Business execution

     ACTION

Understand market landscape and industry pain points

 

Design and refine business, financial and operating model

 

Key team buildout

Design and refine token utility and economic model

 

Sales Mechanics

 

Token economy

 

Token Valuation

Selection of professional advisors

 

Selection of business/token advisors

 

Advice on legal tax, accounting, advisory and transfer pricing

 

FINMA clearing

 

Design funding concept and potential funding services

 

Define sale strategy (target segment, pricing strategy and etc.)

 

Define token sale timeline (presale, public sale) and related marketing plan

 

 

ICO lead advisory services

 

Legal documentation, drafting, review

 

Accounting planning and budgeting

 

Operational framework design

 

Governance framework design

 

Strategic alliances

 

M&A advisory

Example of Deliverables

Project Strategy

 

Business model

 

Project overview/ FAQ

Whitepaper support

 

ICO readiness check

 

Incorporation of legal entity

 

Immigration services

 

Short list of potential investors

 

Launch of web-site

 

Campaign management& SEO/ landing page

Insurance of sale documents

 

KYC and AML process finalized

High level timeline

4- 12 weeeks

4 weeks

 
 

Types of Tokens (economic function):

 

 

 

 

What types of requirements and areas can be relevant for tokens:

  1. Collecting investment schemes act (if you are actively raising funds)
  2. AML act (anti-money laundering) (if you are issued payment token/ actively involved in payment transfers)
  3. Deposits (banked license required) 
  4. Security

Tax consideration:

Watch the full PwC workshop ICO regulation, taxation and legal setup: PWC workshop below:
 

If you're still not sure whether to make your project in blockchain and start your ICO, or you do not know in which country these processes will be better to start - Register on Blockchain Leadership Summit, which will take place on 23-24 November 2018.

Speakers, experts, startups developers from all over the world will tell you everything about ICO regulation in different countries, will share with you the tips for successfully promoting a project, and will discuss future development of digital technologies.

>>> Register here <<< 


Read other useful articles about ICO:

👉 ICO: good practices

 

👉 5 Biggest Failures in Cryptocurrency History

👉 How to generate smart contract for your ICO



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