Crypto.tickets sent the description of its business model to Luxembourg’s CSSF
Blockchain platform Crypto.tickets sent an application to the financial regulator of the Grand Duchy of Luxembourg in order to confirm that the activities of the startup do not require to be regulated by the securities market.
The analysis of the primary distribution of the ICO tokens of the blockchain platform Crypto.tickets was prepared by the Luxembourg law company Elvinger Hoss Prussen and sent to the Commission de Surveillance du Secteur Financier (CSSF) in the name of the Luxembourg company Cryptotickets S.A.
The aim of the application was to confirm the conclusion made by the law company that this activity was not subject to regulations.
Alexander Tkachenko, one of the founders of the 2be.lu Investments foundation in Luxembourg, specialized in business support, including the incorporation of legal entities, explained that the ICO Crypto.tickets is not regulated and there is no time limit for the regulator’s response to such applications but, judging from his experience of communication with the CSSF, the answer can be expected in November. The 2be.lu Investments foundation invested $250,000 in Crypto.tickets within a private offer.
Luxembourg is one of the world’s friendliest jurisdictions for the new fintech companies.. In 2014, when the possibility of a bitcoin ban started to be discussed in Russia, the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s national financial regulator, published a statement, inviting cryptocurrency companies to cooperate.CSSF promised to apply an individual approach when examining the applications.
According to Michael Jackson, one of the partners of the Mangrove Capital Partners company, during the negotiations the representatives of Luxembourg regulating bodies do not show any prejudice against the cryptocurrency-related business and are ready to assist any companies that would provide a detailed description of their business. Regulators say that bitcoin companies won’t have any problems as long as they do what they are supposed to do. And this is exactly what Crypto.tickets team has done when prepared and sent its application to the CSSF.
In 2016, Luxembourg became the first country of the EU to deliver a state licence to a cryptocurrency exchange.
Another reason for a fintech company to prefer Luxembourg is its tax treatment. It has the lowest standard VAT rate in Europe.
In October, the Crypto.tickets team plans to carry out the primary distribution of the TKT tokens that would become the internal currency of the future blockchain system used to pay for tickets. During the initial coin offering, four weeks long, the project organizers plan to raise up to $23 million.