STO Accountants

We’re experienced STO accountants providing global support to our clients covering Setup and Structuring, Accounts and Tax, Brokerage and Banking.

As the cryptocurrency market has developed to incorporate STO’s, Harvex have built a strong niche of services to support tokens as securities.

” Security Token Offerings are international events – Harvex have international reach and can support you, wherever you are based “

What are Security Token Offerings (STO’s)?

By definition, Security Token Offerings are similar in construct to traditional equity style investments, ie revenue shares (dividends) and voting opportunities and importantly – regulation. The ICO phase of utility tokens, which boomed during late 2017, was renowned for usually not incorporating any of these factors.

However, regulation increases the administrative burden for the security token issuer throughout the life cycle, from initial Setup and Structuring, to STO Accounting and Tax, to Banking and Post-STO services. That’s where Harvex can assist.

Accounting for STO’s

Ensure your STO financial statements are correct with expert STO accountants such as Harvex.

Whether your company uses IFRS or local standards such as UK GAAP or US GAAP, we have you covered. We are vastly experienced in accounting treatments and applying these to securities tokens.

Tax on securities tokens

Taxation of STO’s is a key area of importance – both during the initial planning phase, throughout the STO, and into the post-STO operations.

Correct interpretation and application of tax legislation from industry experts such as Harvex will ensure you remain compliant.

Bank account for STO

Harvex work with many of the world’s crypto friendly banks – this includes banks willing to onboard STO’s. Though the process may be longer than a traditional account opening, it is indeed possible to obtain a bank account for a Security Token Offering.

We are able to handle this entire process for you, utilising our direct bank contacts to make the process as efficient and timely as possible.

VAT on Security token offerings

If you are sure you qualify as an STO, rather than ICO, there is a no VAT to consider. However, we would advise the STO vs ICO assessment is conducted by an experienced, industry specific firm such as Harvex to avoid any unnecessary future complications.

Security Tokens vs Utility Tokens

The first step is to ensure you classify your token or coin offering correctly. The process should not be approached lightly, as an incorrect classification can have significant consequences, so work closely with an STO accountant to prevent legal issues further down the line.

When it comes to STO’s vs ICO’s, Harvex are uniquely positioned to conclude, due to our extensive experience across coin offerings of all types.

Regulating a Security Token Offering (STO)

Launching a STO from the UK will present a completely different set of regulations to launching a STO from the USA. One size does not fit all, however Harvex have the experience and knowledge to guide you on this process.

Best countries to launch an STO

With regulation at different points internationally, with some governments having a larger pro-stance, you will find a variety of jurisdictions as options for a launch.

Targeting a suitable STO launch jurisdiction, considering both primary sales and secondary sales.

Conducting a STO is just the beginning, next you’ll need to ensure longevity in your business. This means a suitable STO exchange listing.

STO exchange listing

Security Token Offerings at this stage have limited exchange options. Harvex have a speciality in assessing STO’s and placing them with suitable exchanges, in a time efficient manner.

KYC and AML for a STO

Know your client and anti-money laundering on Security Token Offerings is a pre-requisite for a properly governed project. Integration of KYC / AML and even source of funds or source of wealth will be required even after the STO phase.

STO Liquidity

Brand awareness, marketing and continued business development are essential to retain value and liquidity for your newly listed token.

Harvex are connected with industry leaders who can work with you to ensure your business remains relevant.