If we as human beings have done one thing well, it is to formalize and regulate business and cooperative agreements. Today, judges will rule with corporate law even informal unincorporated agreements that meet certain criteria. And so it is reasonable to assume that business agreements encoded on the blockchain (ICO) will fall under corporate law. Retroactively as well. Hence, we believe that officers of those companies will be held personally liable for illegally issuing securities and may be charged with securities fraud. We believe that the same will be true for crowdfunding, where the law is likely to find in favor of investors rather than business owners. With blockchain being eminently capable of legal compliance, the question is why non-compliance still prevails.
A corporation is the ideal instrument for financing a company. That’s because it allows investors to hold stock for money. Up until recently however it was relatively cumbersome to maintain compliance. Now thanks to new flexible corporate structures and blockchain technology, the corporation will reclaim its superiority as a venture vehicle.
BVNet helps companies place their shareholder register on the blockchain in such a fashion that all compliance requirements are automatically met. BVNet optionally can help with creating a risk profile, a prospectus and with finding investors.
Banks often charge high interest rates, make partners individually liable, are increasingly risk-averse and are encumbered by legacy problems stemming from the 2008 credit crisis.
Unless you are a highly innovative and tech heavy business or meet very specific demands, you typically are not able to secure government subsidies.
Crowdfunding is not regulated. It lacks sufficient investor protection. When your business doesn’t work as expected, expect investor trouble and legal costs.
Issuing your own cryptocurrency to fund your business without sticking to the law that governs securities is irregular and legally highly questionable. Expect a court to soon rule on behalf of investors.
With all the hubbub surrounding cryptocurrencies, one could easily forget about the unmistakable benefits of the blockchain. Data (tokens, coins, shares) stored on it is highly reliable, centralized, immutable, permanent and public. It is the perfect store for a shareholder register. Which is why we want to move quickly past non-compliance into a world where corporations and shareholders seamlessly hold, trade and trust securities. On the blockchain.
Our initial focus is to enable compliant emissions of cryptographic stocks in any Dutch corporation (BV) closely followed by UK corporate entities. With the BV also being an internationally solid corporate partnership vehicle, achieving this brings near compliance for other corporate structures such as the German GmbH, US corporation and LLC and UK limited within reach. In the medium- to long-term, our services will help corporations and investors globally, to connect in the most optimal, transparent and compliant ways.
We are a group of tech, financial, legal and business specialists with a strong drive to improve business processes. We believe that enabling stock emissions using cryptographic techniques will bring large benefits to business as a whole and our clients in particular.
For inquiries or consult, please contact us.