Cryptocurrency Initial Coin Offerings
The British Virgin Islands (BVI) is already a favorable location to launch a company. It is also a highly favorable location in which to launch a Cryptocurrency Initial Coin Offering (ICO).
ICOs raise external cryptocurrency finance. They are similar to Initial Public Offerings, only investors receive cryptocurrency tokens, rather than shares, which they use to buy invested services. A cryptocurrency token’s demand reflects its value, so most investors hold onto their tokens, hoping its demand increases.
By the end of 2019, over 5,500 global ICOs raised more than $27 billion in cryptocurrency. In 2019, BVI ranked third, with over 70 ICOs, with which it raised $2.4 billion.
ICO investors obtain cryptocurrency tokens through blockchains. A blockchain is a computer stored information compilation, formatted for easy searching and sorting. The blockchain gathers and stores information in blocks, which have limited storage capacity. When the block is filled, it links to a previously filled block and forms a blockchain.
Blockchains differ from typical spreadsheets and databases in several unique and important ways. BVI Offshore Company Spreadsheets and databases are fixated. Users are limited, often at certain times, and they can alter and manipulate information. Blockchain information is decentralized, meaning there is no specific owner. Users, therefore:
• Can access and use blockchains at any time. Even multiple users.
• Cannot change or modify information. It is permanent and irreversible.
Most importantly, blockchain’s technology provides its own security – it is nearly impossible with which to tamper. If a cybercriminal attempted to manipulate one block, they would automatically modify another block, so they would have to contend with the newly modified block. Such would then modify another block and so forth. Most cryptocurrency blockchains contain hundreds of thousands of blocks, so effectively manipulating one blockchain could take decades.
Launching a British Virgin Island ICOs
The advantages of launching a BVI ICO company include:
• Tax Neutrality: BVI does not impose corporate, income, corporate income or capital gains taxes when launching an ICO.
• Low Upkeep Costs: an ICO company will incur minimum capital incorporation costs and will experience low maintenance fees.
• No Government Regulations: there is presently no existing BVI regulatory structure that prohibits cryptocurrency and blockchain business.
• Access to Mass Capital: an ICO company offers cost effective and economical means of gaining accessing to mass capital.
• Free Flow of Funds: because there are no money or maintenance rules, funds flow freely into the ICO company.
• Transactional Confidence: BVI offers a strong professional community that efficiently and fluently handles financial transactions.
The BVI Financial Services Commission recently issued the Guidance on the Regulation of Virtual Assets in the Virgin Islands, which offers rules and direction on ICO companies and token issuance.
CCP Financial Consultants Limited
CCP Financial Consultants Limited is a BVI based, multidisciplinary financial services firm dedicated to providing premium financial solutions to clients around the world. It understands BVI’s rules and regulations and its government structure, so it can help your business navigate them when you do business in the BVI.
CCP teams with leading industry professionals to offer assistance to persons interested in the crypto space and seeking to use a BVI company for various purposes including launching an ICO.
Please visit the website for more details on its full range of services and, if required, you can schedule a consultation for more information.