Capital markets & Cryptocurrencies
We ensure for our clients issue of securities, and we advise them regarding regulation of capital markets. We provide legal services in the field of cryptocurrencies, from the design of legal framework for Initial Coin Offering (ICO), through provision of legal services to crypto exchange offices, to representing in proceedings of debt recovery in Bitcoins and other cryptocurrencies, and legal support to projects based on the technology Blockchain or Smart Contracts.
Our specialists in the field of capital market law assist to securities traders, collective investment funds or other subjects of capital markets in the whole range of legal questions of capital markets and collective investment.
To issuers of securities, we offer complex counselling during the preparation of securities prospectus, issue conditions and other documentation related to the issue of securities, as well as representing before the Czech National Bank
We provide legal counselling related to regulatory aspects of their business or preparation of standard forms of contracts and internal regulations to securities traders and other financial service providers.
Thanks to our complex team we provide assistance which takes into account also related regulations outside the scope of capital markets law, especially anti-money laundering measures (AML), related to the problematic of tax law, or protection of personal data (GDPR).
We offer services of representing businessmen or brokers in disputes with clients on capital markets, including disputes arbitrated by the Arbitration Court. Even in the cases of contractually chosen law of other state for the assessment of such contractual relation, we have experience with the assistance to our clients within the scope of the assessment of validity of such arrangement on the choice of law.
Our office has a system of cooperative consultants in several European countries, and thanks to that we are a step ahead when solving matters with international overlap, as e.g. the choice of law of other state.
We especially provide these services in the field of capital markets:
- Preparation of securities prospectus, issue conditions and other documentation connected with the issue of securities, representing clients before the Czech National Bank;
- Ensurance of European passport or licence;
- Legal counselling related to the regulation of investment and other financial services provision, including representing before regulatory organs and communication with them;
- Preparation of contractual documentation under models of ISDA and EFET;
- Representing in disputes with clients including disputes arbitrated by the Arbitrary Court.
As one of the few legal offices, we provide complex legal counselling in the field of virtual currencies – the so-called cryptocurrencies. From the legal point of view the regulation of cryptocurrencies has just started, thus it is also considerably disunited yet dynamically developing. Despite a great extent of distrust, cryptocurrencies have been getting attention on the market due to their economic attractiveness.
We have notable experts who deeply devote to this matter and systematically monitor the latest trends of this exceedingly dynamic field. If you have a business plan related to cryptocurrencies, we suggest contacting our experts. We provide our clients with complex legal counselling in this field overlapping to the law of European Union and relevant international regulation.
Our specialty is primarily Initial Coin Offering (ICO), legal support of crypto exchange offices and other projects based on the technology Blockchain or Smart Contracts, s well as regulation of trading cryptocurrency derivates, management of funds investing into cryptocurrencies and execution of payment transactions related to the organisation of cryptocurrency trades.
As for ICO, this model is currently one of the most attractive manners of receiving financing of business project from the public. The advantage of ICO compared to traditional manners of obtaining investment from the public is the fact that authorities supervising capital markets do not have unified approach to the issue under what conditions ICO is registered and what legal duties an issuer has to fulfil. Due to that these offers may be made without meeting strict requirements for obtaining financial resources from the public on capital markets.
However, the public thinks ICO is not subject to the regulation on the part of public authorities, e.g. The European Securities and Markets Authority (ESMA) strongly recommends the cryptocurrency issuers to consider whether regulations regulating capital markets relate to the concrete offer, and if so, to fulfil legal duties resulting from these regulations.
Relatively instructive and in this regard frequently discussed is also i.a. the opinion of Security Exchange Commission of 25 July 2017, where the Commission expressed opinion that ICO may fulfil criteria set by the so-called Howey test and it is absolutely (within the US jurisdiction) subject to the regulation of public authorities, because provisions of the American Securities Act of 1933, Securities Exchange Acts of 1934 relate to that.
Under certain conditions the subject of the regulation is also trading cryptocurrency derivates, management of funds investing into cryptocurrencies and execution of payment transactions related to the organisation of cryptocurrency trades. In such case, we also provide counselling in close cooperation with our experts on capital market law.
It is important not to miss out that a person providing services connected with virtual currency is an obliged entity under the Act on Selected Measures against Legitimisation of Proceeds of Crime and Financing of Terrorism and the duty of identification of its clients, the so-called KYC, relates to the entity.
We provide counselling concerning the following matters in the field of virtual currency:
- Legal regulation impacting the cryptocurrency operations in the Czech Republic;
- Trading cryptocurrencies and their derivates;
- Initial Coin Offering – (ICO), including the preparation of a project and assessment of relevant regulation;
- Legal opinions and assistance in the field of duties resulting from the Act on Selected Measures against Legitimisation of Proceeds of Crime and Financing of Terrorism;
- Cryptocurrencies and regulation of the capital market – representing before regulatory bodies, opinions;
- Debt recovery in BTC, LTC, ETH and other cryptocurrencies.