D’LIGHT advised a client on the negotiation of a Simple Agreement for Future Tokens (SAFT), an agreement by which a virtual asset issuer receives payment and later issuing and delivering tokens.
The client needed guidance on the method of token sales, means of advance payment, tax liabilities, and multinational regulatory compliance.
Currently, Korean regulations prohibit initial coin offerings after the issuance of tokens. As such, in many transactions, corporations established in Singapore or Cayman Islands issue the virtual assets and execute SAFTs with investors from all over the world thereby requiring careful consideration of not only the laws of the issuer’s country, but those of major investor’s countries as well.
