Blockchain has made it possible to build trust with the use technology. Distributed data registry technology facilitates the creation of large, direct, interconnected marketplaces for products, services, and information, challenging many traditional approaches in this regard. It serves to change the perception of how we understand finance (DeFi), data exchange (durable medium), or managing organizations (DAO). Although this technology is still at an early stage in its development, we have already gained substantial experience in this area by supporting the most innovative projects in Poland and world over. We advised on the creation of a virtual currency exchange in Denmark; we participate in regulatory consultations concerning tokens in Poland, Estonia or Switzerland; we consult on token market making contracts, mining pool services and decentralized prime brokerage services. For this reason, we know how to increase your competitive advantage through technology.
How can we help you?
We provide legal services for emerging projects both in prior to token financing (e.g. Initial Coin Offering) as well as in its duration, in particular with regard to:
- choosing the relevant jurisdiction (Poland, Singapore, Estonia, Malta, Switzerland, others),
- preparing SAFT (this simple agreement for future tokens) transaction documentation,
- auditing the compliance of the ICO/IDO/other model with the provisions of domestic law or international regulations and in terms of the proper legal qualification of the token,
- preparing the roadmap for ICO/IDO/other and project tokenomics as well as evaluation of project financing for ICO/IDO/other,
- implementation of AML/KYC standards,
We also advise our clients on:
- legal aspects of implementing Blockchain technology in business operations in accordance with applicable international and national legal regulations (e.g. GDPR, AMLD V, EMD 2, MAR, PSD2, MIFID II),
- representing NewTech entities from the blockchain industry that are just starting their business activity in Poland or abroad in communication with investors and state authorities,
- obtaining appropriate licenses and permits,
- preparing documentation for decentralized applications (DApps) and other blockchain-based services,
- verifying the provisions of or drafting contracts (letter of engagement) with external service providers, e.g. payment institutions, stock exchanges, wallet providers, blockchain analysts, auditors, executives, programmers, etc.
Examples of our lawyers’ achievements:
- Drawing up an agreement obligating the issuer to deliver target operational ERC-20 tokens to the purchaser within the time limit provided for in the agreement (SAFT), with a value of $2.5 million,
- Preparing an application to the Polish Financial Supervision Authority for interpretation and legal qualification of an f-NFT token with a security potential and representing the Client in administrative proceedings following the application,
- Designing and calibrating the tokenomics of a project of our client, which involved analyzing and adapting the token characteristics in order to mitigate legal risks associated with its issuance and to maximize future funds raised from the ICO,
- Monitoring of national and EU legislative trends and drafts of legal regulations in the field of crypto assets in order to assess the risk to the business of our client – a company that was the first in the world to deploy a truly decentralized supercomputer which created a global marketplace for computing power based on the Ethereum network,
- Reviewing the licensing requirements for crypto asset market making services in Switzerland, in response to concerns of our client about whether performing market making activities for own use and involving only the client’s own native tokens requires a license,
- Drawing up a legal opinion regarding a potential impact of the Regulation of the European Parliament and of the Council on Markets in Crypto-assets (MiCA) on a client’s token project using hybrid tokens with payment-like and utility-like functions,
- Verifying and correcting the provisions of on-ramp services contracts (fast exchange of cryptocurrencies into fiat currencies) executed by one of our Clients,
- Evaluating the characteristics of an investment token designed by our client and making a recommendation on the choice of the country of its issuance, taking into consideration the legal parameters pertinent for the token’s legal qualification by a relevant domestic financial market supervisory authority (e.g. Financial Instrument Test published by the Malta Financial Services Authority or The Howey Test which provides interpretative rules specified by the U.S. Supreme Court),
- Supporting our client in contacts, in particular as regards AML/CFT, with foreign entities offering access services to a payment/banking account, necessary to carry out future operations involving tokens and cryptocurrencies,
- Representing a Polish development studio developing big-data-based video games in regulatory consultation process with the Financial Innovation Department of the Estonian supervisory authority (Finantsinspektsioon) as well as with the Liechtenstein Financial Market Supervisory Authority (Finanzmarktaufsicht Liechtenstein) regarding the planned issue of tokens with potential investment functions,
- Drawing up a cooperation agreement regarding mutual promotion and marketing for an entity offering mining pool services, operating under a license issued by Canadian authorities.
- Representing our client in negotiating the terms and conditions of a contract for outsourcing the management of the client’s native token portfolio in order to increase its liquidity on the secondary market (market making),