Banking + Payments
Blockchain technologies are disrupting some of financial services most iconic players. Technology giants blur the boundaries across industries, shaking up value chains and setting new standards across a full range of services to their global customers.
Money is data and blockchains don’t discriminate. They accept any kind of data and that opens the door for the high-speed frictionless movement of digitized assets and low-cost payments, international remittances and foreign exchange.
- In commerce, stablecoins – a form of cryptocurrency – are dollar-pegged digital tokens assigned to a nation currency. Currently there are Canadian, US Dollar, AUD & GBP pegged offerings from recognized and legitimate organizations who have full regulatory support and maintain rigorous KYC (Know Your Customer) and BSA/ AML (Bank Secrecy Act/Anti-Money Laundering) programs.
- In 2019 IBM launches World Wire, a blockchain-based global payments network that includes 72 countries and 47 currencies. While the digital token is invisible to end-users and is buried deep in IBM’s technology, the mere backing of a tech behemoth illustrates the future of this financial technology.
Transactional law is being transformed by rapidly evolving open source technologies. Blockchains are secure, trustless, append only transaction superhighways which can securely store agreements, releases, assignments, deal memos, intellectual property and the endless list of legal transactions that make the creative assets of a producer / filmmaker bankable.
The adaptation of blockchain technology to the legal profession is not a threat to a lawyers survival, it will enhance the services they provide.
Tokenization of assets, smart-contracts, cryptocurrencies are certain to change the look of legal transaction management.
There is an unprecedented amount of collaboration between competing law firms as Blockchain and Digital Asset practice groups work together exploring and developing standards for smart legal contracts.
- The Accord Project is member driven organization consisting of law firms, financial organizations and technology partners. Self described as “The Smart Legal Contracts Stack”, the project members are developing open-source tools for legally enforceable smart contracts.
- OpenLaw is a free legal agreement repository supported by a global community of legal minds and developers. OpenLaw offers community-created, Open Source Smart Contracts and open source blockchain enabled legal agreements. They are a “spoke” within the greater ConsenSys Labs “hub”. Stay tuned for a list of open-source contracts for use in the Film & Television Industry.
- Rocket Lawyer is a global leader in digital legal services. Rocket Lawyer, ConsenSys and OpenLaw are working together to bring Ethereum blockchain innovations such as smart contracts, automated dispute resolution and identity management applications to the legal services market.
- Accuratius is a proud member of the Global Legal Blockchain Consortium along with more than 225 law firms, technology companies and institutions.
Blockchain allows the tokenization of any asset. 2018 will be remembered as a period of cryptocurrency-gone-wild with startups raising $8 billion in Initial Coin Offerings (ICO) from investors. For filmmakers who require funding beyond the publicly available grants, subsidies and traditional sources, the evolving regulated Security Token Offering (STO), Initial Token Offering (ITO), and recent Initial Exchange Offerings (IEO) hold great promise. Cryptocurrency will disrupt film & television in the same way digital media displaced celluloid film.
ICOs, essentially crowdfunding with crypto, went off the rails and regulators stepped up efforts to protect investors, rules were crafted and ICOs became STOs and crypto-coins evolved into security tokens.
What is making blockchain based capital raises so popular? Simple, -> Security Tokens <-
** Note: Government regulation related to securities and capital markets is changing regularly. In the USA, there are many layers of state and federal financial regulation. In Canada, there are provincial regulators and federal overseers. The consequesnces of stepping out of bounds when fundraising can be costly. Always engage the services of a competent attorney.
There are a number of regulations under which startups or incumbents can raise digital currency that allow exemption from certain disclosure and registration requirements
- In the United States, the Jumpstart Our Business Startups (JOBS) Act of 2012 saw changes to the Securities Act making it easier for startups to raise capital from accredited investors and from the public.
- Regulation Crowdfunding (REG CF) allows startups to raise $1,070,000.00 through crowdfunding offerings in a 12-month period.
Regulation A+ (REG A+ Title IV) allows private companies to remain private and raise up to $50 million from both accredited investors and the general public. Reg A+ has two tiers: Tier 1, for securities offerings of up to $20 million in a 12-month period; and Tier 2, for securities offerings of up to $50 million in a 12-month period. An issuer of $20 million or less of securities can elect to proceed under either Tier 1 or Tier 2. The Tier 2 reporting obligations are onerous.
Regulation D (REG D- Rule 506b) allows companies to raise unlimited funds but cannot use general solicitation or advertising to market the securities. The company may sell its securities to an unlimited number of “accredited investors” and up to 35 other purchasers.
Regulation D (REG D- Rule 506c) allows companies to raise unlimited funds and is allowed to use general solicitation or advertising to market the securities. The company may only sell its securities to “accredited investors”.
- has a number of regulations under which startups or incumbents can raise digital currency and would be exempt from certain disclosure and registration requirements. The most popular is Registration A or Reg A (Reg A +). Reg A is , Reg CF, Reg D (506b, 506c), Reg S.
- In Canada ITO/STO development is healthy and the Canadian Securities Administrators (CSA), which brings the provincial and territory regulators together, has developed the CSA Regulatory Sandbox which “is an initiative of the CSA to support fintech businesses seeking to offer innovative products, services and applications in Canada” to encourage and promote the development of new financial technologies. Certai.
- Financing options can be scarce and we envision a completely tokenized development ecosystem for filmmakers and producers leveraging the SEC’s Regulation A+ crowdfunding exemption in the US and a. A completely regulated “showcoin” to finance prod support the a product from pre-production to distribution. A “showcoin” of sorts providing capital to indie projects. Let us know if your production could benefit from
NOTE: Fundraising methods allowed by the SEC have a “Bad Actor” disqualification clause which is not related at all to acting in a film or theatrical event. Actors that have the occasional bad performance can still raise capital.