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The Planet MicroCap Showcase 2018 in Las Vegas, NV, held a panel on the regulatory and legal issues involved in initial coin offerings (ICOs) and token sales. The showcase was held to bring together growing and promising companies, top dealmakers in MicroCap Financing, and industry thought leaders. The three-day conference involved networking events, one-on-one meetings, and numerous presentations and panels.

Bit Coin and Block Chain: Disruptive Financing

The panel “Disruptive Financing – Regulatory and Legal Issues to Consider for ICOs and Token Sales” was one of eight presentations given during the showcase. It included several top transactional and finance attorneys, including Louis A. Bevilacqua or Bevilacqua PLLC, Richard Friedman of SheppardMullin, and Lynne Bolduc of Fitzgerald Yap Kreditor LLP. The panel was moderated by Margaret Rosenfeld of Smith Anderson.

The panel focused on using blockchain technology as disruptive financing. It started off by diving in to the difficult task of defining bit coin, block chain, and miners.

The presenters discussed how and why companies are using tokens. They noted that the companies most successful in using tokens and blockchains for financing have a specific business purpose for doing so. Mr. Bevilacqua also made the point that companies can choose between selling equity and risking dilution or selling tokens and not being diluted. However, the use of tokens needs to make sense with the business’s purpose, industry, and user base before deciding it is the right thing for a business.

One of the focuses of the panel was pointing out the various U.S. regulations that apply to token and block chain technologies, as well as, the regulations that companies are smart to follow. These included Securities and Exchange Commission (SEC) regulations, Financial Industry Regulatory Authority (FINRA), Financial Crimes Enforcement Network (FinCEN), and Anti-Money Laundering (AML) compliance.

The panel focused on tokens as a security, and how companies must treat the securities in regard to regulatory compliance. Mr. Bevilacqua went into the common exceptions investors use to comply with SEC regulations in regard to bit coins.

Finally, the panel discussed the future of tokens and blockchain technologies.

To hear more about what the panel discussed, you can watch it here.

Bevilacqua PLLC Is Highly Experienced in ICOs and Token Offerings

Bevilacqua PLLC’s veteran finance, M&A, and crowdfunding attorneys have kept up with blockchain technology from the very beginning. By staying apprised of the current technologies, how companies can best utilize them, and the related regulatory framework, the firm is well positioned to help companies currently involved with ICOs and token offerings or businesses that wish to get involved.

To discuss remaining regulatory compliant with an ICO or securities token offering (STO), contact a business lawyer from Bevilacqua PLLC at (202) 869-0888.