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Initial Coin Offering in Slovakia
Updated on Monday 30th May 2022 Rate this article
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Foreign investors who want to open companies in Slovakia can choose based on their experience and level of expertise in certain fields. For example, blockchain is one of the most appreciated at the moment and it can be used for the creation of various types of enterprises. Among these, initial coin offerings or ICOs are quite popular in Slovakia. Here is an insight on the regulations and the steps related to launching an ICO and how our company formation specialists in Slovakia can help you set one up.
What is an ICO and how does it work?
Initial coin offerings or ICOs are similar to initial public offerings (IPOs) in terms of how they work, however, they apply to cryptocurrencies. This means that through an ICO in Slovakia you can obtain financing for various projects by creating and issuing digital money instead of real ones. The main difference between them is that the first one can be launched through private enterprises, while the second one must be enabled by public companies that can sell various types of assets via the stock exchange.
The number of investors interested in exploring the cryptocurrency sector is on the rise and they are the ones interested in investing in new ventures that raise funds through ICOs.
Should you decide to launch an ICO, you should note that the principles applied are the same as to IPOs as there is no specific law to regulate initial coin offerings. However, as an European Union member state, Slovakia respects directives in this sense.
If you decide to open a company in Slovakia with the purpose or launching an ICO, feel free to address our consultants.
Company registration requirements to create an ICO business in Slovakia
There are no special requirements to register a company with the purpose of launching an ICO in Slovakia. The private limited liability company is the main legal entity recommended for this type of activities, as it can be incorporated in about 1 week.
In terms of licensing, there are no special permits to obtain at this point, however, specific measures that protect investors and anti-money laundering regulations must be considered.
Our Slovak company formation advisors are at your disposal with complete information and assistance in creating a business with the purpose of launching an ICO.
How can Slovak ICOs be used?
ICOs are one of the optimal solutions to raise money for various projects. Here is how you can do that:
- - by creating projects through which digital tokens are created and sold to the public;
- - by partnering into joint ventures with other investors or persons and create an initial coin offering;
- - application or platform creation through which digital token is promoted is also possible;
- - crowdfunding platforms are one of the most popular ways in the world to launch an ICO.
Our advisors can help you with detailed information on how such projects work. We can also help you choose the most advantageous way for you to operate in Slovakia.
The fintech sector in Slovakia
Initial coin offerings are just a portion of the financial technology or fintech sector in Slovakia. Alongside the creation of cryptocurrencies, ICOs have become popular among foreign investors interested in operating high-tech enterprises in this country.
When treated as financial assets, ICOs fall under the regulations of the National Bank of Slovakia which has gathered relevant information on this sector. According to it:
- - at the level of 2020, there were about 18 fintech companies with their legal seats in Slovakia;
- - most of them are small enterprises with up to 5 employees;
- - out of all of them, 5 companies have been on the market since 2016, 2 since 2017, 5 since 2018, and 4 since 2019.
Should you decide to launch an ICO in Slovakia and need support in creating the legal infrastructure for it, please contact our local advisors.
Meet us in Slovakia
Call us now at +421 915 980 808 to set up an appointment with our consultants, who are handling company formation in Slovakia. Alternatively you can incorporate your company without traveling to Slovakia.
As our client, you will benefit from the joint expertize of local accountants and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Slovakia.
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