The trend of issuing own tokens is not fading. At the same time, regulatory rules are becoming increasingly complex. The broader the geographical reach of a client base, the more challenges arise for virtual asset service providers. And it does not matter whether these are ordinary digital coins or crypto.

 

Given the popularity of this segment and the growing number of startups in it, Lawrange aims to study all the nuances of bringing this type of business to promising markets and help clients legalize their activities. That is exactly what we did in one of our recent projects.

 

Want more details? Learn them from the following parts of the case!

 

The Challenges of Working with Tokens in the International Space

Before discussing the processes, it is worth understanding the challenges faced by those who want to operate in the virtual asset segment. Among the main ones:

  • In different countries, tokens may be treated as securities, digital assets, or even as currency. This creates risks for businesses and investors who are not always familiar with local regulations.
  • The absence of unified standards complicates international operations. For example, what is allowed in Singapore may be prohibited in the USA or the EU.
  • Different blockchain platforms have their own protocols. This creates integration issues and the need for bridges, which themselves can be vulnerable.
  • Users often face fraud, phishing, or unstable projects. Without trust in the infrastructure, tokens cannot become a mass-market instrument.
  • Token prices can change rapidly, making them unreliable for long-term contracts or salary payments.
  • In international transactions, it is difficult to determine how tokens should be accounted for: as assets, income, or investments. This creates confusion for companies.
  • The use of tokens in humanitarian or social projects requires special transparency to avoid manipulation and abuse.

 

Does all of the above complicate bringing a business to market? Of course — especially for projects targeting an international audience. In such cases, the assistance of Lawrange experts becomes more than appropriate.

 

How We Addressed the Challenges

Each of our clients comes with a set of legal tasks. However, during a deep analysis, it often turns out that they need comprehensive support. That was also the case this time, when Lawrange specialists performed a full range of operations:

  • Determined the legal status of tokens in different jurisdictions (securities, digital assets, utility tokens) to minimize regulatory risks.
  • Assisted the client in establishing companies in the EU, USA, Asia, and offshore/onshore jurisdictions to ensure a legal foundation for token operations.
  • Developed optimal taxation schemes for international token transactions to avoid double taxation and penalties.
  • Provided the client with access to international banking instruments, enabling legal token-related operations.
  • Supported the obtaining of licenses so the client could operate legally on the global market without delays or rejections.
  • Commercialized high technologies, attracted investments, and protected intellectual property in the blockchain sector.
  • Acted as a bridge between law and technology, providing clear legal support for investors, partners, and users in different countries.

 

Spoiler: we helped the client legalize their activity. And not only in one jurisdiction, but in several zones that were in the focus of the business.

 

Result: The Client’s Business Was Launched and 100% Legalized

The cooperation lasting several months delivered the expected results. The client received comprehensive support to bring the enterprise to market. And that is not all:

  • The company was registered in the relevant jurisdiction, taking into account international standards and local requirements.
  • Tokens were classified and aligned with regulators, reducing the risk of being treated as “illegal” or “grey” assets.
  • A clear taxation model was implemented, allowing accounting and reporting without double taxation or penalties.
  • Bank accounts and payment gateways were opened, enabling official international transactions.
  • The necessary licenses for working with digital assets were obtained to legalize operations on the global market.
  • The client’s technologies (in the field of blockchain and tokenization) were legally protected, increasing their investment attractiveness.
  • Thanks to transparent processes and compliance with international standards, the client gained the trust of investors, partners, and users.

 

The project can be considered fully successful. Especially for a client developing a startup in the international space.

 

Do you want to achieve the same results and quickly bring your token-related business to market? Entrust the legal support of your project to the experts at Lawrange!