ICOs are the blockchain equivalent of the traditional means of raising capital via an Initial Public Offering and have been particularly attractive to blockchain-powered, tech start-ups who have offered tokens as currency to use within their products.
Start-ups looking for funding produce a white paper outlining what the venture is about, what it needs to progress, how much money is being sought, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for.
During the campaign supporters buy some of the distributed cryptocoins (similar to shares in a company) with virtual or fiat currency. If the money raised does not meet the minimum funds required the money is returned to the backers and the ICO is deemed unsuccessful. If the funding needs are met within the specified time frame, the money raised is used to either initiate the venture or to complete it.
The Isle of Man's tolerant regulatory framework has been designed to encourage ICOs and there is an active movement to encourage growth in the sector. Digital Isle of Man is an official member of the British Blockchain Association. The Designated Business Act requires all cryptocurrency businesses to formally register with the government and submit to inspection by the Isle of Man Financial Services Authority.
Independent and objective advice
International company incorporation
Liaison with lawyers, KYC provider and Financial Supervision Commission
Provision/Review of white papers and ancillary documents
Registration of Initial Coin Offering
Provision of AML and CFT manuals
Provision of directors
Preparation of accounts
On-going company administration and secretarial work.