How to Build a Compliant Security Token Offering on BrightCOIN, Part 2

The BrightCOIN platform offers a complete turnkey technology solution for building and launching security token offerings (STO) and ICOs. Depending on if you want to accept US investors, building an ICO is a breeze. So is building an STO that allows an issuer to accept US funds. This is the second part of a two-part post that will focus on how you can build an STO or ICO on the BrightCOIN platform.

 

Step 1: Create Your Coin

After creating your account on the BrightCOIN, you’ll begin by creating your coin. You’ll give it a name, symbol, the total number of coins to be minted, and the price in USD.

 

Step 2: Build Your STO or ICO

The next step is to build your offering by selecting if you intend to accept US investors. If yes, you’ll be asked to choose if you will launch with a Regulation D, rule 506c, Regulation S., or Regulation A+. In this case, you will simply copy and paste the subscription agreement part of your PPM into the provided window. If not, simply click “no” and go ahead to the next section of the page.

You’ll next enter your hard cap and soft cap, calculated in the number of tokens for each. You’ll then enter the total allotment of tokens granted to the founders, advisors, rewards/bounties, company holdings, and any other group you may decide to grant tokens, like software team or legal team.

Next, you’ll set up your pre-sale and main sale. Enter the number of tokens you’ll make available for sale, the corresponding bonus, start and end dates and lock-in periods. You’ll also be able to create as many different periods for your main sale. NOTE: for all Reg. D and Reg. S offerings the lock-in periods are pre-set to 12 months to comply with SEC regulations.

 

Step 3: Select Currencies You’ll Accept

On this page, you’ll pick which currencies you’ll accept for your offering. You can choose ETH, BTC, BCH, LTC, DASH, DOGE, XML, EOS, and USD. If you want to accept USD, you can do so by check, bank wire or ACH. Our basic ‘no upfront costs” package is restricted to ETH only.

 

Step 4: Upload Legal Documents

Now it’s time to enter your company details and upload your legal documents. Enter your company name, address, phone, EIN or company identification number. Then upload a copy of your company formation documents or articles of incorporation, your PPM (if you’re accepting US investors) a copy of your token sales agreement (if you’re not accepting US investors), your General Terms and your Privacy Policy. Also, upload a transparent copy of your company logo that will appear on your contributors’ page.

 

 

 

Step 5: Complete KYC, AML, Live Photo ID Verification, and Bad Actor Checks

KYC, AML, and live photo ID verification are required for all founders, principals, and contributors. You’ll be given on-screen instructions on how to process your ID properly so that it can pass through the facial recognition software with ease. BrightCOIN provides the KYC and AML scans at no charge. There is a $3 charge for every photo ID verification that is charged to a credit card on file on a pay-as-you-go basis. Additionally, Bad Actor Checks are legally required for:

 

  • The company issuing securities, including its predecessor entities and affiliated entities issuing securities;
  • Directorsgeneral partners, and managing members of the company;
  • Executive officers of the company, and other officers of the company that participate in the offering;
  • 20% beneficial owners of the company;
  • Promoters connected to the company;
  • Any person compensated for soliciting investors
  • For pooled investment funds, the fund’s investment manager and its principals.

 

 

Step 6: Setup Wallets & Launch

Now it’s time to enter the addresses for the wallets where your investors’ funds will get deposited. You’ll need a wallet address for each currency you accept, with the exception of USD, of course. You’ll also enter the names and wallet addresses for all founders, advisors, company holdings, and any pre-sale fiat investors.

 

 

Once you enter your credit card information for the photo ID verification charges, you’ll be given an XML link or a customizable API to put on your offering’s landing page. Send us a copy of your SSL certificate and you’ll be ready to go live.

That’s it! Once you have all of your token math, company info, legal docs and wallet addresses, the entire process will take about 10 minutes.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Social Media Auto Publish Powered By : XYZScripts.com
%d bloggers like this: