Malta has always been on the forefront of technology and innovation. In the past months, a number of initiatives have been launched, aimed at establishing an innovative and attractive regulatory framework for entities operating in blockchain (and distributed ledger technologies), virtual currencies, cryptocurrencies, and for those entities interested in raising finance through an ‘Initial Coin Offering’ (ICO).
An Initial Coin Offering (ICO) is an innovative way of raising finance from the public by issuing ‘coins’ or ‘tokens’, usually in exchange for other digital tokens such as Bitcoin or Ethereum’s Ether.
Initial reviews
Proposed business model is analysed to assess whether it is subject to licensing or regulatory requirements. Our engagement then proceeds with a review of the proposed business and token generation (ICO). This is very important as there are different regulatory requirements applicable to (a) pure utility tokens (b) securities tokens and (c) hybrid tokens.
Corporate
We are able to assist to set up your corporate structure in Malta. Services also include drafting of founders/shareholders agreements
Tax
We provide advice on Maltese tax matters relating to the ICO, business operations and any transfers.
Banking
Bank account opening in the ICO field may be a complicated process. We are able to assist to set up and open bank accounts with banks/financial institutions.
Advisory
Ongoing advisory services (on a case by case basis)
Accounts and company maintenance
Preparation of financial statements
Audit (performed by independent auditors)
Company maintenance & back office services
Drafting of agreements between the operating company and the tokenizer.
Pre-ICO agreements and related documentation
Private token purchase agreements/private placement
Agreements with the team and advisors of the project
Escrow Agreement
Bounty campaign
Regulatory
Further regulatory advice (on a case by case basis).
Assistance with any licensing application (if required)
KYC advisory
White Paper
Drafting and review of the white paper. This is very important in order to avoid legal, compliance and regulatory issues
Privacy Policy / Terms of use/Token Sale agreement
Drafting the user documentation for the ICO website, e.g. Terms of Use, Privacy Policy, the list of disclaimers and risks associated with the participation in the token sale for publication on the website.
How can we help?
We offer a wide range of consultancy, tax, compliance and accountancy services to assist you throughout in each step of the application process. Our multi-disciplinary team of professionals will not only assist you during pre-licensing process but will be able to provide you with the on-going support you may need with respect to regulatory compliance, accounting and tax matters.
For further information please contact the firm’s tax and corporate services partner Stephen Balzan (sbalzanact.com.mt).