Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

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

To raise money through an initial coin offering (ICO) in Kentucky, you must comply with securities laws. According to [2], ICOs are considered securities offerings and are subject to securities laws. Therefore, you must register your ICO with the Kentucky Department of Financial Institutions or qualify for an exemption from registration.

To qualify for an exemption, you must meet certain requirements. The Kentucky Securities Act provides several exemptions, including the following:

  • Intrastate offerings: If your ICO is offered and sold only to Kentucky residents, you may qualify for an exemption from registration under the intrastate offering exemption [2].
  • Regulation D offerings: If your ICO meets the requirements of Rule 506 of Regulation D under the Securities Act of 1933, you may qualify for an exemption from registration [2].
  • Crowdfunding offerings: If your ICO meets the requirements of the federal crowdfunding exemption under the JOBS Act, you may qualify for an exemption from registration [2].

To determine which exemption is appropriate for your ICO, you should consult with a securities attorney.

Conclusion

To raise money through an initial coin offering (ICO) in Kentucky, you must comply with securities laws. ICOs are considered securities offerings and are subject to registration or exemption requirements. To determine which exemption is appropriate for your ICO, you should consult with a securities attorney. [2]

Source(s):
Jurisdiction

Kentucky