With the rapid development of blockchain technology, Web3.0 projects are becoming a global focus. For Chinese entrepreneurs, going overseas is not only an important way to expand the market, but also a strategy to cope with domestic regulatory challenges. However, legal compliance is the first issue that must be considered in this process.
This article will delve into the five major legal issues of Web3.0 blockchain projects going overseas.
1. Suitability of Blockchain Projects Going Overseas
In China, blockchain projects face regulatory policies such as ICO, IEO financing bans, restrictions on cryptocurrency exchange operations, and mining bans. Therefore, for projects involved in these areas, going overseas becomes an inevitable choice. Choosing the right destination for going overseas requires consideration of local legal environment, tax policies, governance structures, and privacy protection.
2. Establishment of Blockchain Project Companies
Blockchain projects usually need to register a series of companies to create a legal framework, including development lab companies, product and Token distribution companies, DAO companies, etc. These companies each serve different purposes and responsibilities to ensure legal interaction with the outside world.
3. Legal Entity Registration of DAOs
DAOs (Decentralized Autonomous Organizations), as a new form of organization, need to register companies as legal entities to avoid being seen as ordinary partnerships, thus protecting DAO members from unlimited liabilities in terms of judiciary, tax, and finance.
4. Legal Considerations for Token Issuance
Token issuance needs to consider whether it involves securities laws. In most mainstream countries or regions, illegal issuance of securities is unlawful. Therefore, choosing a non-profit organizational form (such as a foundation) as the Token issuing entity can avoid legal risks.
5. Structure and Establishment of Cryptocurrency Funds
The establishment of cryptocurrency funds needs to consider the fund structure, choose the appropriate jurisdiction, determine intermediary institutions, and prepare documents. Common cryptocurrency fund structures include equity funds, securities funds, and single and multi-fund (umbrella fund) structures.
In the context of globalization, going overseas with Web3.0 blockchain projects is both an opportunity and a challenge. Understanding and complying with the legal regulations of the target market is key to the success of the project. For Chinese entrepreneurs, this means not only needing an international perspective but also being well-prepared in legal compliance.
