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Can I raise money through an initial coin offering (ICO) without violating securities laws in Ohio? What are the requirements?
Requirements for Raising Money through an Initial Coin Offering (ICO) in Ohio
To raise money through an initial coin offering (ICO) in Ohio, you must comply with securities laws. The Ohio Division of Securities has issued guidance on ICOs, which states that ICOs may be considered securities offerings and subject to securities laws [2].
Ohio Securities Laws
Ohio securities laws require that all securities offerings be registered with the Ohio Division of Securities or qualify for an exemption from registration [2].
Exemptions from Registration
There are several exemptions from registration that may be available for ICOs in Ohio. The most commonly used exemptions are:
- Regulation D: This exemption allows for the sale of securities to accredited investors and up to 35 non-accredited investors. The issuer must file a notice with the Ohio Division of Securities and comply with certain disclosure requirements [2].
- Regulation A: This exemption allows for the sale of securities to both accredited and non-accredited investors. The issuer must file an offering statement with the Ohio Division of Securities and comply with certain disclosure requirements [2].
- Crowdfunding: This exemption allows for the sale of securities to Ohio residents through a registered crowdfunding portal. The issuer must comply with certain disclosure requirements and limits on the amount of money that can be raised [2].
Conclusion
To raise money through an ICO in Ohio, you must comply with securities laws and either register the offering or qualify for an exemption from registration. The most commonly used exemptions are Regulation D, Regulation A, and crowdfunding. It is important to consult with a securities attorney to ensure compliance with all applicable laws and regulations [2].
[2]:
Source(s):
Jurisdiction
Ohio