Blockchain: a new way of managing business

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New technologies are rapidly changing our lives, penetrating such a conservative sphere as law. We talked with Gleb Apenkin, a lawyer of corporate practice at Capital Legal Services, about the aspects of interaction between these two areas.

– Digital technologies are increasingly used by business, – explained Gleb. – Including blockchain as a universal, convenient and reliable way of storing information and concluding transactions. The use of blockchain is practiced in such areas as logistics and trade, storage of databases, financial transactions, etc.

The new investment attraction tool – the ICO (Initial Coin Offering), allows raising financing through the issuance and sale of a new cryptocurrency/tokens to investors, and smart contracts allow you to automate and, at the same time, transparently and reliably conclude a contract and execute it.

With regard to legal support, we should note that it is not the technology of blockchain itself that requires it, but rather the purposes for which it is used. For modern business it is important that the legal framework of projects that are offered by the market not only corresponds to the interests of the owners, but also created the most secure conditions for investors and users.

We will single out such a service as drawing up a legal opinion. So, the issuer company within the ICO needs to prepare, with the help of consultants, a legal opinion on the fact that the release of the token will not violate the laws and rules of the chosen jurisdiction. Often such an opinion is submitted to the financial regulator for approval.

Some of the most favorable jurisdictions for an ICO at the moment are Gibraltar, Malta, as well as well-known off shore zones – the Cayman Islands and the British Virgin Islands.

Perhaps Russia will become a hub for international crypto business in the future. Several bills that establish the regulation of digital assets have already passed the first reading in the State Duma. However, at the moment, the proposed regulation does not fully meet the established practice of the cryptocurrency market. It is worth noting that there is lack of a logical connection between the provisions of the draft laws, as well as a rigid restriction on the circulation of cryptocurrency, according to which they cannot be purchased or sold for rubles, foreign currency or tokens.