Distributed ledger technology (DLT) and digital securities data provider, Kepler Finance, talked with Smith Anderson partner Margaret Rosenfeld about the speed at which the Blockchain industry continues to evolve, specifically which countries are seeing the most STOs (Security Token Offerings). Its 2019 Digital Securities Market Research report includes facts, figures and insights from leading companies operating in the Digital Securities market, as well as from issuance platforms, legal counsel, issuers and investors.
According to Margaret, STO structures can be complex and companies should carefully evaluate the jurisdictions to incorporate in due to potential tax and accounting issues the company and potential STO investors could face. In addition, if the security token is not just a financial security token (such as a limited partner interest in a REIT), but the financing for a company that plans to use blockchain technology as an integral part of its operations, then selecting a jurisdiction that is supportive of blockchain technology is essential.
When it comes to countries that would best attract STOs, Margaret posed the following: “Is the country offering incentives to blockchain companies, working on proactive legislation and attracting the essential service providers to support a Blockchain ecosystem?“
Margaret concluded her commentary by indicating that Malta is the current leader amongst countries offering a supportive Blockchain ecosystem.
Margaret has corporate and securities law experience throughout the United States, as well as across the globe. She leads Smith Anderson’s Blockchain Technology and International Law practices and has over 20 years of corporate and securities law experience. Her extensive experience with compliance and regulatory matters lends to the structuring of initial coin offerings and token generation events for companies as well as representation of purchasers in the crypto space.
To read the full Kepler Finance report, click here.