We need guidance on tokenising equity of our company on Ethereum. Following this, we need clear legal advice on how to structure it. The basis of our requirements are:
Is it legally feasible to tokenise equity / stock / shares of a UK (England & Wales) listed company on the Ethereum blockchain? E.g. 20% of our company would become tokens.
We want to do this to:
- Initially pay and incentivise people (advisors, brand ambassadors, referrals, competitions, etc.)
- With growth and traction, list our token on exchanges so the tokens can be traded / easily transferred (kind of like penny stocks)
This is roughly how it would work:
- 20% of equity from the UK LTD company would be allocated to tokens, e.g. 1 million tokens
- Whoever owns the tokens would have legal ownership of the company, and Moneo could never take that ownership away
- We would not need to register share ownership with Companies House in the UK (maybe the 20% is held by a custodian)
The questions are:
- Is this legally possible?
- Do we need to perform any KYC/AML on the token holders?
- Do we need a custodian, and how can we avoid listing every shareholder with Companies House (just the 20%)?
We’ve technically validated that this is straightforward with Lucas Cullen (https://moneo.io/bitcoinbrisbane), we just need those tokens to have legal standing.
Are you sure you want to cancel this milestone and refund the payment to your client?