Launch an ICO in Netherlands

Updated on Wednesday 05th December 2018

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Initial coin offering (ICO) in the Netherlands is seen as a more competitive way to raise capital for startup companies, through the issuance of cryptocurrencies. Investors who are interested in how to start a fund in the Netherlands involved in ICO activities will first have to draw up a whitepaper, a document which is similar to the prospectus that has to be concluded when opening an investment vehicle
 

What are the main types of ICOs in the Netherlands? 
 

The manner in which ICO investments are developed in the Netherlands is currently not regulated under the Dutch legislation. Foreign investors can enter any of the ICO activities that are available at a global level, with the mention that there are no statutory rules that can protect the investors. Thus, it is advisable to receive assistance from specialists in the field when drawing up the fund’s documents. Some of the main types of ICOs are presented below: 
 
  • utility tokens – through this type of tokens, their holder is entitled to purchase online products and services from the issuer;
  • the utility tokens may also provide the exclusive right to enter a certain online ICO platform;
  • security tokens – the holder of a security token has the right regarding the issuing company, such as the right to obtain profits from the respective company;
  • such tokens can be used for providing digital dividends, which can be paid on a weekly or monthly basis. 
     

What are the main documents for starting a Dutch ICO? 
 

Foreign investors who are interested in how to start an investment fund in the Netherlands operating in the ICO sector will have to sign a white paper, as mentioned above. The document has to describe the tokens used for ICO activities, as well as the manner in which they will be implemented. This is the main document through which the fund raises its investments
 
At the same time, the representatives of an ICO launched in the Netherlands may sign a Simple Agreement for Future Tokens, a legal document that is signed between the tokens developer and the investors of the fund. Businessmen interested in launching an ICO in this country are invited to contact our team of affiliates in the Netherlands for further information on other compulsory registration documents.