How the initial coin offering works in the Netherlands - Baltimore Post-ExaminerBaltimore Post-Examiner

How the initial coin offering works in the Netherlands

Financial technology, cryptocurrencies, blockchain technology, initial coin offerings, known as ICOs, are all on everybody’s lips these days as they are rather new concepts which appeal to most investors, especially young ones who also have some knowledge in the IT field. This is because cryptocurrencies and blockchain are related to the IT industry, or better said they are generated through very powerful computers.

In order to start a business in any of the fields mentioned above, you will need a very developed country from a technological point of view, for example, a country like the Netherlands. One of the most sought types of businesses in the Netherlands at this moment is the initial coin offering (ICO).

So, what do you need to set up an ICO in the Netherlands? Let’s see below.

Create a virtual currency

ICOs are based on the issuance of new digital coins which are traded on the market, something like initial public offerings (IPOs), but not for professional investors. So, you will first need to have a virtual currency that you can trade. That will automatically imply a computer through which you can generate your cryptocurrency. This is where the Netherlands’ technological development is the most important: this country has such a good Internet infrastructure that it makes it a perfect location for launching an ICO.

Documentation for launching a Dutch ICO

Before moving to the step where you actually prepare to launch the initial coin offering, some documents, like a white paper, where you explain the purpose of your ICO, how it works, how it will be implemented, its risks and its benefits could come in useful. This is because the Netherlands does not have a specific law for ICOs, therefore any documents which can prove the usefulness and legitimacy of your idea are welcome.

Registering a company

So, you have your newly-created token and the documents to prove how you plan to create and launch your own ICO. The next step is to register a company; this is just like in the case of investment funds, only much simpler. You don’t need any large amount of money or sophisticated structure, as a simple limited liability company is enough.

One thing you must pay attention to is the requirements of the Dutch Financial Supervisory Authority, which enables the launch of ICOs. Most probably, all the documentation which you have prepared before launching your new digital token will be carefully analyzed by the Authority. The main purpose of this analysis involves the risks investors are subject to.

ICOs in the Netherlands is no longer a new thing, so having a good marketing strategy is imperative if you want it to be successful. This would be the last step for creating such business in the Netherlands.

Launching an ICO in the Netherlands can turn out to be simple and successful if you plan it correctly from the start and if you follow some basic rules. However, you can also turn to the Dutch Investors’ Association where you can get some useful insights and tips on how to begin.

 

 


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