{"id":359,"date":"2019-03-28T09:47:51","date_gmt":"2019-03-28T08:47:51","guid":{"rendered":"https:\/\/advokatskafirmasajic.com\/blog\/?p=359"},"modified":"2019-04-22T07:47:30","modified_gmt":"2019-04-22T05:47:30","slug":"law-keeping-up-with-technology-6","status":"publish","type":"post","link":"https:\/\/advokatskafirmasajic.com\/blog\/law-keeping-up-with-technology-6\/","title":{"rendered":"Law – keeping up with technology"},"content":{"rendered":"\n

ICO projects, products and tokens<\/strong><\/h3>\n\n\n\n

Since we have\nalready written about cryptocurrency, the legal status of the same and\nthe ways in which other jurisdictions regulated this area, we will now\nwrite about Initial Coin Offering<\/em>\n(ICO). <\/p>\n\n\n\n

As we previously defined the\nICO, as an unregulated method of\nfundraising to secure a new project through a cryptocurrency,<\/em> we have also found\nthat the core of the problem (some would even say advantage) lies in\nnon-regulation. Therefore, in this text, we will pay more attention to the\nemergence of ICO, then ICO products, tokens, potential directions of\ndevelopment, and finally whether its application will find an adequate place in\ntoday's legal system.<\/p>\n\n\n\n

Initial Coin Offering projects\nhave emerged along with the rapid development of cryptocurrencies and blockchain,\nand the very first problem arose in\ntheir definitions, actually in a question whether they, as such, issue their\nown cryptocurrency in exchange for new money or the same can issue any cryptocurrency. Why\nis it significant? Precisely because, for example, the Chinese\nindustrial regulator considers that in that way new digital money is issued,\nwhile in accordance with its regulations, governing currency and\nthe market China prohibits issuance of cryptocurrencies through ICO\nprojects. On the other hand, the relevant regulators in the United States\nconsider that issuing refers to new tokens or vouchers that have their nominal\nvalue in already known currencies. It is precisely for\nthis reason that the\nUS allows ICO projects to function despite\nthe lack of clear rules, but lead by the fact that\ntheir status is not fully defined yet there is\nno basis for taking any measures against the same. The reason is mostly related to the fact that\nthe majority of these companies can legally bar themselves by\na prominent disclaimer of liability, the rules of use, and\nthe emphasis on noting that ICO products are not securities.<\/p>\n\n\n\n

However, the reason why we often associate ICO products with securities is that those who invest become ICO projects investors, and the fact that very success of an ICO project and its profitability depends on the performance of the company that issues cryptocurrencies. Therefore, in the same way<\/g> as joint stock companies can raise capital by issuing shares, ICO projects can attract their investors by issuing a token, where the same represents a kind of digital certificate of ownership over shares. In particular, with the token, we prove we are owners of the amount, percentage<\/g> of assets, money, cryptocurrency or any other property. Most ICOs<\/g> are launched through the Ethereum platform. They are programmed and released on the Ethereum virtual computer in the form of a smart contract<\/strong>, which then serves to raise funds and, in return, the investor gets a share or promise that the project will be launched in the future. On that basis, it follows that the digital token is valid or will be valid in the future, and precisely through this digital token, we actually connect the material and digital world. <\/p>\n\n\n\n

Author: Tijana Milacic, e-mail: mtijana@afsajic.com<\/a><\/p>\n\n\n\n

Law – keeping up with technology – Blockchain and its applications<\/a><\/p>\n\n\n\n

Law – keeping up with technology – Cruptocurrency, ICO and legal dilemmas<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

ICO projects, products and tokens Since we have already written about cryptocurrency, the legal status of the same and the ways in which other jurisdictions regulated this area, we will now write about Initial Coin Offering (ICO).  As we previously defined the ICO, as an…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[91],"tags":[],"class_list":["post-359","post","type-post","status-publish","format-standard","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/posts\/359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/comments?post=359"}],"version-history":[{"count":3,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/posts\/359\/revisions"}],"predecessor-version":[{"id":440,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/posts\/359\/revisions\/440"}],"wp:attachment":[{"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/media?parent=359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/categories?post=359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advokatskafirmasajic.com\/blog\/wp-json\/wp\/v2\/tags?post=359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}