An initial coin offering in Denmark is the process of raising capital to support an innovative blockchain or cryptocurrency venture.
The ICO allows the Danish company to raise the funds it needs to develop a token that will then be offered to the participating investors.
Presently, the ICO market in Denmark is unregulated and uncontrolled. Nevertheless, several laws are relevant for its purpose.
The ICO phase can be an is important one for the company, as a well-developed initial offering can allow the business to jumpstart its evolution.
Our agents specializing in company formation in Denmark discuss the most important aspects of the initial coin offering.
Investors who need more information, as well as counsel in all matters concerning incorporation, can reach out to us for more information.
Initial coin offering in Denmark – general regulation
Virtual tokens that resemble financial instruments can be subject to regulation by the Danish Financial Supervisory Authority.
Some of the most important issues concerning their regulation, and the regulatory regime for crypto currencies, are listed below by our agents:
- – the assessment of the initial coin offering in Denmark is offered by the authorities on a case-by-case basis;
- – in practice, most ICOs do not fall under the scope of the regulator, thus there is no need for regulatory approval to organize them;
- – the ICO can be subject to regulation if the coin can be considered a financial instrument; the following is taken into account: whether the coin is standardized, transferable, negotiable and if it has a financial purpose;
- – according to a 2017 statement issued by the FSA, ICOs are not subject to prospectus rules, nor the Danish Payments Act.
Questions about ICOs in Denmark
An initial coin offering in Denmark is not regulated per se, however, it is subject to a number of rules that apply to its offerors.
In essence, an ICO can be subject to the same thoughtful preparation and due diligence as an IPO. Our team answers some of the common questions below.
What is the white paper?
The document that describes the business plan, the abilities of the token or the products or services that will be developed with the help of the capital raised through the ICO.
What is the smart contact?
A computing code that allows for the simplified execution of a number of agreements. It also makes it easier to manage and distribute the tokens offered through the initial coin offering in Denmark.
How is the ICO launched?
Once the development team creates the token, it receives a unique name and logo, and it can then be promoted through various channels.
The company launching the ICO can announce that it accepts other cryptocurrency or fiat money in exchange for tokens (or shares) under the aforementioned smart contract.
The ICO will have a website and essentially the project is advertised to the general public until the offerors have raised the required capital.
The data on the first ICO held in Denmark, for a Danish stablecoin, is the following:
- – it was backed by 283 investors;
- – the entrepreneurs were based in 15 different countries;
- – the amount raised through the ICO was more than 10 million kroner.
If you are an investor in Denmark who wishes to know more about the process of launching an initial coin offering in Denmark, our team can answer more questions.
Open a company with our help
Denmark is one of the most digitized economies within the EU member states.
The country has a good IT infrastructure and foreign investors benefit from a welcoming business climate.
Our company formation experts can walk you through the steps required for opening a new Danish business.
We can assist you throughout the pre- and post-registration stages and help answer your questions about licensing or VAT registration.
If you wish to know more about company formation in Denmark, our team is ready to answer your questions.
We assist local and foreign business owners who wish to open a company or a branch.
Our services also include those for virtual offices.