FMA approves capital market prospectus for Blockchain Securities

(c) VGN: Nicole (left) and Nadine Damblon, founders of HydroMiner.

The ICO as a financial instrument has been in crisis for several months. And for good reasons. Because legally issued tokens do not face any business value. Investors need to be able to count on the performance of the part in the market – and this market has already had a much better time. This is different with a security token offer (STO). The coins issued here are representative of a title, that is, represent a business value. For them, however, the same legal provisions apply as for the other titles. In the case of Austria, the Financial Market Authority (FMA) must approve a corresponding prospectus in the capital market. The Viennese cryptomerisation start-up, Hydrominer, with its H3O token, was able to do it for the first time with the support of Stadler Völkel.

+++ Conda AG makes its shares transferable via the +++ blockchain

H3O-STO with badignment of the rights of the substance

More specifically, with the H3O token on the Ethercha Blockchain, subordinated profit sharing rights will be allocated to the STO, as of February 1, 2019. "The holders of profit-sharing rights are legally responsible for profits, losses, reserves Hydrominer's hidden and goodwill.This is what is called the pleasure of consuming a substance, "says Stadler Völkel in a press release.

"The right to vote goes beyond the shareholders"

H3O token holders would also have the right to actively participate in the commercial decisions of Hydrominer in addition to these financial claims. This right to speak goes beyond shareholders and allows investors to participate actively in decision-making processes. "In addition, the securities requirements provide for a kind of co-sale right in the event that a qualified majority of the owners of Hydrominer sell its shares".

Almost a year of preliminary work

"The H3O-Token project is one of the most important legal challenges that our law firm has faced in the past year," said Oliver Völkel, the firm's partner. Preliminary work in this regard had begun almost a year before the final approval of the capital market prospectus by the FMA. "It also had to clarify fundamental questions, such as whether blockchain could even be an appropriate register for securities," Völkel said.

Complications related to mining as a business object

The issuer has also contributed to the complexity. Hydrominer is a virtual mining company that also sells mining packages to its customers. "The FMA has understood that mining is a financial service, which is why its clbadification as an alternative investment fund is under threat, as it is the case with the financial crisis. other companies in the sector.For this also, a solution had to be found first in consultation with the supervisory authority, "says Völkel.

Mines in the journal

It should be noted at this point that crypto-extraction is also the subject of intense criticism in the public debate. The reason is above all the enormous energy consumption. Hydrominer uses "Green Mining" for hydroelectric plants that are CO2 neutral. Some crypto-currencies are now trying to cope with alternative energy-intensive systems.

⇒ On the page of Stadler Völkel

⇒ On the page of Hydrominer

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