Why separate them
If the token, the development and the project’s funds sit in one company, any regulatory requirement or lawsuit affects everything at once. That is why the project is divided into three levels.
Three levels
- Foundation. Owns the token and develops the ecosystem; it has no shareholders in the usual sense. Foundations exist in different jurisdictions, including the UAE financial centres, and the terms differ considerably.
- Operating company. Develops the product and hires the team.
- Treasury company. Holds and manages the project’s funds.
What needs to be thought through
- What rights token holders receive
- Where, how and to whom the token is sold
- The governance and decision-making procedure
- The tax consequences for the founders and the project
How we work
We determine the token type and model, propose jurisdictions and agree the structure with a virtual assets lawyer. Conditions in specific countries are clarified with local advisers.
Regulatory requirements change quickly. Before launch, current conditions must be verified with a virtual assets lawyer. The decision to open an account is made by the bank. Tax consequences depend on your residency.