Tokenised bonds (STOs) enter the mainstream
As we have discussed on numerous blogs this year, here at Crowd for Angels we expect a rapid rise in the number of tokenised bonds in 2019. In simple terms, a tokenised bond is a digital representation of an underlying security (e.g. a share or a bond) which exists on a blockchain. The key characteristic […]
Blockchain Jargon Buster
Confused by crypto? Baffled by blockchain? Then read part one of Blockchain Jargon Buster – our new series which aims to explain, in simple terms, the technical terminology and street slang used in the crypto industry. Initial Coin Offering An Initial Coin Offering, is an unregulated process by which funds are raised for a new […]
Personal Taxation – Investments in Cryptocurrencies
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 on cryptocurrencies: 1. Trading profits which will be subject to income tax; 2. Highly speculative transactions which are treated […]
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 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 solution […]
What Information Should Be 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
Tokenised 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 […]
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 […]
The UK Regulatory Framework of digital tokens
The regulation of digital tokens and coins is a developing area as the current United Kingdom (“U.K.”) financial services law was not developed with the use of digital tokens in mind. Therefore, it is important to bear in mind that subtle differences in the legal structure and function of digital tokens can have significant regulatory […]
