The small country of San Marino in Europe has issued a decree called “Blockchain Technology Rules for Businesses,” introducing transparent, clear and simple regulation for Blockchain technology.
This decree has some advantages and financial benefits, which are as follows:
• Transparency: anti-recycling safeguards to assure the maximum level of system protection.
• Concreteness: A solid and non-alterable legal framework.
• Regulatory certainty: an ecosystem governed by clear regulation to attract investors and achieve the transformations that Blockchain technology offers the company.
• Facilitated tax regime.
The Republic of San Marino is using an assimilation mechanism in the following form:
• Utility tokens are assimilated to foreign currencies
• Investment tokens are regarded as shares
If you use the tokens that are defined by the decree, the resultant income will be tax exempt.
Blockchain Standard regulation includes the following: utility tokens and investment tokens.
In the first phase of the Blockchain regulation in San Marino, cryptocurrencies will not be under consideration and regulated, because they still include the rules of money market and payment services.
Anyone who is dealing with the usage and/or investment of tokens will be allowed to operate and issue digital assets, once the Republic of San Marino recognizes them as a Blockchain entity.
This applies to companies or personalities who are residents:
• In the Republic of San Marino.
• In a European Union member state.
In a non-European country that is deemed appropriate by the Republic of San Marino.
The rules for the initial offer of common tokens are:
• Publication of Whitepaper and summary note to be delivered 20 days before the offer to the Institute.
• The obligation to advertise the token offer that is clearly identifiable and that provides accurate and non-misleading information.
Furthermore, if investment tokens are going to be offered publically, it is required:
• Prospectus, prepared in line with the provisions of the LISF and the European "Prospectus" Directive to be presented at the Institute for Innovation of the Republic of San Marino SpA.
If investment tokens are not going to be offered publically, it is required:
• "Enriched" whitepaper and summary note.