Without any doubt, the most significant benefit of the 21st century is technological progress. Today, it’s possible not only to connect with the global community, but also to engage in international business with a lot less complexities every day. Attracting more capital and engaging the international community is possible with the multijurisdictional security token offering.
In this Stobox Insights series, you will learn about:
🔸 Main principles of global compliance;
🔸 Possible types of offerings best suited for global mission;
🔸 Some technical and legal details concerning multinational offering.
If tokenization is interesting for you, feel free to request a 30-min consultation: https://stobox.io/tokenization
Global corporate compliance is different in any single country. It goes for the legal side, the amount of money possible to attract without declaring it, and many other nuances. Multijurisdictional STO also requires compliance with all the participating countries’ laws. STOs (Security Token Offerings) are a new way for businesses to issue securities. The aim is to offer a virtual, blockchain-based token that is both unique and transferable, and that may be used to represent anything from a profit participation right to a stake in the emitting firm. Without the requirement for a bank account, profits may be paid directly to token holders. The defi community, as well as a growing number of established businesses, anticipate efficiency advantages as a result of a possible decrease in the number of middlemen and, as a result, transaction costs.
There are three forms suitable for conducting a multijurisdictional security token offering: private placement, public offering, and exempted public offering. Though initial public offerings are extremely expensive to conduct, they don’t set a limit in trading the securities. Private placements and exempted public offerings are limited to a small number of investors and have trading restrictions. Tokenization will serve as a disruptive instrument in this case, as it automatically enables trading of the security tokens in the liquidity pools. This way, you will get liquidity and financial attractiveness for your business from the very first day.
00:00 — Intro
01:30 — Two principal milestones of the global offering
02:24 — The main challenge of global compliance
03:00 — Public offerings vs private placementsexempted public offerings
04:18 — Typical rules for private placements
08:15 — Reverse solicitation rule
09:19 — KYCAML
10:21 — How can this be done technically?
11:18 — Last words
If you are interested in getting a free 30-min consultation on the matter of tokenization, leave a request on our website: https://stobox.io/tokenization
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