Belize is a favorable location for offshore company formation and some investors are also taking into account the same advantages for the purpose of an initial coin offering in Belize.
An initial coin offering (ICO) is the cryptocurrency equivalent of the initial public offering (IPO).
A cryptocurrency company based in Belize can launch an ICO in the same jurisdiction as means of raising funds for their activities.
While there is no specific regulatory regime for an initial coin offering in Belize, the cryptocurrency company interested in this launch will comply with the industry’s requirements for these types of projects, the length of the ICO campaign and the products (tokens) offered to prospective clients.
Our Belize company formation agents assist investors who wish to open a cryptocurrency company and, at the same time, launch an ICO for the purpose of raising funds for their activities.
Advantages of an initial coin offering in Belize
The level of control and regulation for initial coin offerings differs from one jurisdiction to another.
While some countries have clear policies, others, much like Belize, have yet to formulate clear laws, therefore, the ICO is largely unregulated.
The following advantages are worth taking into account in terms of an initial coin offering in Belize:
- Regulatory: Belize does not impose specific rules and regulations for initial coin offerings;
- Protection: investors are subject to an important level of asset protection in Belize;
- Privacy: the applicable confidentiality rules in Belize can be favorable for initial coin offerings;
- Tax: the tax treatment of an IBC in Belize is a distinct one in as such that the corporate income tax does not apply to income earned by the offshore company from outside of Belize; our accountants can give you more details.
Investors who choose to open an offshore company in Belize benefit from the same advantages.
In addition to the favorable conditions listed above for an initial coin offering in Belize, investors also have access to a simple company formation process for the International Business Company (IBC).
Our team of company formation agents can give you more details about the incorporation process and the general corporate requirements in this jurisdiction.
Initial coin offering in Belize
Investors who wish to launch an ICO for a cryptocurrency company in Belize will first need to incorporate a business in this jurisdiction.
As previously mentioned, the tax neutrality offered to offshore companies in Belize is an important advantage for those taking into account launching an ICO from this location.
Investors can structure the cryptocurrency company, as well as place the Ip for this business in a holding company, which can also be structured offshore.
The number of initial coin offerings has grown over the years worldwide.
In Belize, the following ICO-related activity took place in recent years:
- – USD 104,843,983 amount raised through ICOs;
- – 1.09 token volatility;
- – 24 ICOs.
- – By comparison, at a global level, the largest amount of capital raised through ICOs (7,160,637,743 USD) and the largest number of ICO launched (374) is in the United States.
- – The jurisdiction with the second-largest number of ICOs at a global level is Singapore (227), followed by the United Kingdom (218) on third place.
The data is provided via an article published in October 2020in the International Review of Economics & Finance (a peer-reviewed journal published by Elsevier).
Our team of Belize company formation agents can provide complete information on the structuring of offshore entities and their advantages for crypto companies and ICOs.
Contact us for more information on our company formation services.
We also provide assistance to foreign nationals interested in residency and immigration.