Analysis of legal risks of a crypto project

Cryptocurrencies have forever changed the way we think about personal finance and doing business. Over the years, they have been controversial, criticized, crime-generating, fraught with setbacks, and... a great opportunity to make good money.

Despite its many advantages, digital money has a number of disadvantages. Naturally, they are inherent in all financial markets, but in the case of cryptocurrencies, the risks are doubled due to their specific features.

Cryptocurrencies are unstable, unregulated, do not guarantee investor protection, are subject to extreme volatility, and are extremely attractive to fraudsters. The prospects for virtual earnings can be as vague as the currency itself. Therefore, anyone who invests in bitcoin or conducts transactions with cryptocurrencies must first of all take into account the risks in order to take the necessary measures. Only a comprehensive approach will help to effectively protect funds. 

Most crypto projects are classified as high-risk, which, in the event of an unsuccessful outcome, can cause serious losses for the investor. In an effort to achieve super-profits, ICO market participants plunge into large-scale PR campaigns, while forgetting about such important aspects as ownership structuring, tax, administrative and currency risks. 

Облік інтересів стратегічних інвесторів при реалізації проектів у сфері ICO – вкрай актуальне завдання, як для самих інвесторів, так і для ідейних лідерів, організаторів проектів, щоб запобігти складним і, можливо, конфліктним ситуаціям у майбутньому.

Taking into account the interests of strategic investors in the implementation of ICO projects is an extremely important task for both investors and thought leaders and project organizers in order to prevent difficult and possibly conflict situations in the future.

 We provide a range of legal support services for FinTech and ICO projects:

 BASIC SERVICES: 

• Analysis of White papers and other documentation accompanying the project for possible risks for the investor.
• Assessment of legal and tax risks in the implementation of an ICO project.
• Advice on the peculiarities of currency and tax legislation in ICO projects.
• Working out the issues of "entering" FinTech projects: risk analysis, offering structuring options, developing documentation and a step plan for entering and exiting the project.
• Implementation of KYC (preliminary verification) procedures for project founders.
• Advice on the application of KYC legislation in each specific investment case.

Our specialists have extensive experience in the cryptocurrency field. We keep our finger on the pulse of events in the cryptocurrency industry, monitor all changes in legislation and court practice in disputes related to cryptocurrencies.