FCA clarifies crypto regulation and looks to increase investor protections
Last week the Financial Conduct Authority (FCA) released its long awaited consultation paper entitled Guidance on Cryptoassets. One of the operational objectives of the UK regulator is to secure an appropriate degree of protection for consumers, so it clearly has a remit to step in and protect investors from putting their money into this emerging […]
Security Tokens in 5 Images
There has been an explosion in the interest surrounding security tokens and STOs (Security Token Offerings). Unlike ICOs, that relied heavily on the value appreciation of a ‘utility’ token, security tokens benefit from real-world assets they represent. This connection helps bridge the gap between traditional finance and the blockchain world. Below we have produced five […]
Personal Taxation – Investments in Cryptocurrencies
Written by Tony De Nazareth, CEO and Director of Crowd for Angels who is a Fellow of the ICAEW. The HMRC recently published a new policy paper termed “Cryptoassets for Individuals” This is in line with our paper on Personal Taxation – Investments in Cryptocurrencies reproduced below: The guidance identifies three possible treatments for profits […]
Accounting for Initial Token Offerings – Revenue or Liability Recognition
Most companies which launch Initial Token Offerings (ITOs) want to avoid classification of their tokens as equity to avoid problems with the regulatory authorities. Therefore, assuming that the offering is liability financing rather than equity financing, the exchange of value must be properly recorded on the issuing company’s financial statements. The ledger entry would have […]
Stablecoins – Why They Are Becoming Important
Cryptocurrencies have been immensely volatile since they were launched. Although Bitcoin’s volatility has reduced in comparison to it’s early years, it remains high enough to not replace any of the traditional fiat currencies that exist today. Volatility is hindering cryptocurrencies’ ability to become established as a unit of account and medium of exchange. A potential […]
What Information Should Be Included In A Whitepaper?
A Token Sponsor’s whitepaper is a critical document. A whitepaper provides an overview of a Sponsor’s token project, as well as specifics on the project’s technological application, any related products or services, and how the digital tokens will operate. If the tokens are designed to monetise the value of such products or services, it may […]
Accounting for Cryptocurrencies
Original article has been written by Tony De Nazareth, CEO and Director of Crowd for Angels who is a Fellow of the Institute of Chartered Accountants in England and Wales, and an Associate Member of the Association of Corporate Treasurers. There has been little or no information on the accounting treatment of cryptocurrencies or Initial […]
Security Token Offerings — A Brighter Future
Tokenized Assets and Security Token Offerings are vying to spark adoption and legitimise the industry. Many Initial Token Offerings (ITOs) have failed mainly due to bad execution, lack of transparency and accountability. Data clearly indicates a continued slowdown in the total capital raised by ITOs since June this year. This slump is supported by the decreasing […]
How to diversify your crowdfunding investments
UPDATED: 20th November 2018 The idea behind the common saying, “don’t put all your eggs in one basket”, has been around in some form or another for thousands of years. To take one example, in Ecclesiastes 11:2 the Old Testament highlights the benefits of diversifying your assets – “Divide your portion to seven, or even […]
An Investor’s Guide to Cryptoassets: Introduction
Introduction to CryptoAssets What started as a computer programmer’s hobby almost 10 years ago, is now a rapidly growing sector that has generated high returns for early investors. Cryptocurrencies are largely thought to have the potential to emerge as a transformative payment innovation, but the volatility and wild price swings of late have left the […]
