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Can I raise money through an initial coin offering (ICO) without violating securities laws in Arkansas? What are the requirements?

Requirements for Raising Money through an Initial Coin Offering (ICO) in Arkansas

If you are planning to raise money through an initial coin offering (ICO) in Arkansas, you must comply with the securities laws of the state. The Arkansas Securities Department (ASD) regulates the offer and sale of securities in the state, including ICOs [1].

To avoid violating securities laws in Arkansas, you must follow these requirements:

  1. Register with the ASD: If your ICO involves the offer and sale of securities, you must register with the ASD before offering or selling the securities in Arkansas [1].
  2. File a notice: If your ICO involves the offer and sale of securities exempt from registration, you must file a notice with the ASD at least 10 days before the first offer or sale of the securities in Arkansas [1].
  3. Disclose information: You must provide investors with all material information about the ICO, including the risks involved, the terms of the offering, and the use of proceeds [1].
  4. Comply with anti-fraud provisions: You must not make any false or misleading statements or omissions in connection with the ICO, and you must not engage in any fraudulent or deceptive practices [1].
  5. Limit the amount of investment: You must limit the amount of investment by non-accredited investors to comply with the crowdfunding investment limits [4].

It is important to note that the requirements for ICOs may vary depending on the specific facts and circumstances of each offering. Therefore, it is advisable to consult with a securities attorney to ensure compliance with all applicable laws and regulations.

[1]: VIRTUAL CURRENCIES: THE OVERSIGHT ROLE OF THE U.S. [4]: Regulation Crowdfunding - SEC.gov

Source(s):
Jurisdiction

Arkansas