Impact of blockchain vol.2: Fundraising

Given that as Highgate Group we have a very rich experience in legal, tax and accounting grasp of the quite broad ecosystem around blockchain, we participate in several events dedicated to blockchain.

This was also what the recent Impact Hub conference Impact of Blockchain vol.2: Fundraising was all about, which Peter Varga participated in. Peter is one of the few lawyers in Slovakia (if not the only one) who has legal and tax experience with STO (Security Token Offering) as well as IPO (Public Offering of Securities), and therefore his contribution to the discussion was backed up by the real-world experience he has gained as an attorney or partner of an accounting firm in his practice. It is the STO that is often compared to the IPO. Peter Varga also said something about IPOs and STOs in a recent interview for Hospodárske noviny.

The issue of fundraising in blockchain projects is not only an issue within the Slovak space, but it is the subject of deeper analyses, for example by the EU organization ESMA (European Securities Market Association), which addresses this phenomenon with regard to the current regulation of financial markets. According to ESMA, fundraising on blockchain is not risky in terms of macroeconomic elements. Thus, the absence of regulation should not cause the collapse of the financial system. According to ESMA, regulation is needed primarily for the protection of the financial consumer, so that he/she has sufficient and relevant information about the investment risk he/she is exposed to by investing in specific tokens/rights/projects. Not only this topic, but also best practices for ICOs (Initial Coin Offering) and STOs was the subject of this Impact Hub panel discussion. In general, however, it can be said that it is “getting better”. Where and why it is being “managed”, by the way, was discussed recently at a crypto investing conference we organised, which included real-life experiences not only of us lawyers and taxpayers, but also of investors and startups. Also, if you have any legal, tax or accounting questions, we are at your disposal.