Smartlands Cooperates with TVINS Law to Introduce Legal Framework
Smartlands has partnered with TVINS Law to develop its business legal framework for asset tokenization in full compliance with the law. TVINS law firm is one of the leading law firms in the field of banking and finance in Lithuania and has extensive experience in alternative finance. They are active in a regulatory field with particular attention to Fintech and blockchain related regulation.
TVINS is recognized by the comprehensive directories LEGAL 500, Chambers and Partners, IFLR 1000 and “has a growing reputation for advising on consumer credit and regulatory developments in alternative financing” (LEGAL 500, 2017). They advised a number of market players in Lithuania from Fintech banks and investment funds to crowdfunding platforms. The law firm was established by experienced and skilled professionals who previously worked in a leading law firm in the Baltic States, large corporations, and public entities.
According to the agreement, the law firm will help Smartlands to receive a crowdfunding license and build legal framework compliant with Lithuanian and EU laws. The process of getting a license to start issuing asset-backed tokens requires close interaction with the Central Bank of Lithuania, with which TVINS has a long history of mutually beneficial collaboration.
According to Central Bank of Lithuania supervised by European Central Bank, an equity token offering can be made in crowdfunding platforms. In cases where security tokens are issued (granting the right to ownership, management of the company or granting other rights to shareholders such as the right to receive part of the company’s profit in the form of dividends or another form, providing for payment of interest or redemption of tokens, etc.) using a crowdfunding platform, the requirements for such activity provided in the Law on Crowdfunding and the Law on Securities are applicable.
The overall implications of selecting Lithuania to receive a crowdfunding license means Smartlands can safely roll out its innovation idea in a regulatory friendly environment and address any potential EU regulation issues before expanding to the rest of the EU.
