STO Issuers Would Likely Need to Register as Public Companies Under the Securities Exchange Act

For a digital token to fall under Section 12 (g), it should be an “equity security” which signifies that the issuer has over $10 million of total assets, over …

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A VC firm considers investing in a new cryptocurrency startup located in Nevada.

– The research analysts begin their due diligence of the startup’s directors, financials and market fundamentals

– #hiswai is used to map a variety of issues that surround the cryptocurrency market

– Strong relationships are found across a broad section of data that includes articles, references and government issued releases

– #hiswai shows strong relationships concerning SEC regulation, taxation, and security surrounding the venture

– The research team is able to assemble and consume the necessary references to produce their report – within minutes.

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Coinbase Finally Makes Bitcoin SV Funds Available for Withdrawal

As CoinSpeaker reported in November, BSV had been created as a result of a hard fork in the Bitcoin Cash (BCH) blockchain. In fact, the fork resulted …

You found me. Imagine what I can find for you – and faster than your competition.

To read our story click here

I can not only find information about something, I can tell you what’s related to it, and where it is going. I can help you visualize connections between concepts, businesses, ideas and people. I can help you find the information that can make you the one that knew before everyone else. I make research more effective. I help due diligence become deeper and more meaningful to investors. I can organize your data so you can see unseen relationships that are creating an impact. I am #hiswai

This is what I can do for you:

A VC firm considers investing in a new cryptocurrency startup located in Nevada.

– The research analysts begin their due diligence of the startup’s directors, financials and market fundamentals

– #hiswai is used to map a variety of issues that surround the cryptocurrency market

– Strong relationships are found across a broad section of data that includes articles, references and government issued releases

– #hiswai shows strong relationships concerning SEC regulation, taxation, and security surrounding the venture

– The research team is able to assemble and consume the necessary references to produce their report – within minutes.

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LC LITE to put letters of credit on blockchain platform

LC LITE hopes to to streamline the US$2.3T letters of credit (LC) market with a blockchain-based platform. It will connect trade parties directly via a …

LC LITELC LITE hopes to to streamline the US$2.3T letters of credit (LC) market with a blockchain-based platform. It will connect trade parties directly via a digital solution for cross-border trade transactions requiring letters of credit. LC LITE is part of a strategic partnership with Coinsilium Group, a London-listed crypto investment and advisory firm.

Dimitri Kouchnirenko, a co-founder of LC LITE commented: “Letters of Credit are a huge market, perfectly suitable for implementation on distributed ledger technologies. LC LITE’s blockchain typically replaces intermediaries by capturing the unique data of a transaction in an immutable and transparent chain of records. Its smart, self-executing contract features perform transactions automatically upon fulfilment of specified conditions in a digital Letter of Credit between the buyer and the seller. Reducing errors, discrepancies and fraud are major benefits of our blockchain solution. The cryptographic security underlying blockchain technology renders trade transaction records stored on blockchain tamper-proof, reliable and verifiable by all parties at all times.Dimitri Kouchnirenko

LC Lite

The founders of global invoice finance provider, Incomlend, are launching a platform built on a blockchain to bring the benefits of an immutable and decentralised system to the vast LC market. Approximately 13% of global goods exploits LCs which are a key component of the worldwide trading system. In this, LCs are a financial instrument which guarantees payment from an importer to an exporter upon documentary proof of a shipment’s consignment. This is vital in cross-border trading because it guarantees payment in advance of final delivery.

But the LC process involves many intermediaries, including financial ones – usually banks. These manage the financial execution of the trade on behalf of the importer (buyer) and exporter (seller), who jointly agree the terms set out within a LC. Blockchain technology should:

  • simplify and expedite what is currently the inefficient and expensive processing of documentation by intermediaries
  • improve cash flow for trade parties
  • enhance security by reducing fraud and default payments.

How LC LITE will work

LC LITE units of exchange will serve as the means of:

  • payment booking for each LC contract
  • ownership transfer
  • enabling a vehicle of trade for contracts between different parties on the platform.

The units of exchange circulate only within the LC LITE ecosystem and take advantage of the intrinsic demand for opening and processing of LC contracts. Units of exchange enable an LC contract to become a tradeable asset between investors. By delivering this, LC LITE hopes to reduce or eliminate many of the current challenges within existing LC practices, for example funding, delays, fraud and centralisation. Both data forgery and manipulation are recurrent risks (in the current market), abetted by the need for numerous intermediaries and a lack of information immutability.

It is also a fact that:

  • up to 80% of LC documents contain discrepancies when presented to banks
  • the costs associated with trade documentation processing and administration represent up to 20% of physical transportation costs.

The LC LITE platform

In contrast, LC LITE has designed its platform to enable trade parties to transfer, track and validate transactional documents directly between one another. This will replace traditional banking intermediaries as well as Interbank (SWIFT) messaging. Instead, transactions will occur via a secure LC LITE smart contract held on a private chain. This should:

  • increase speed
  • reduce fraud
  • eliminate double spending.

The platform includes a network consensus mechanism that authenticates all transactions and LCs by LC LITE approved validator nodes. LC LITE ensures that the platform incentivises importers, exporters and investors. The solution thereby improves cash flow for both importers and exporters through early payment from the trading mechanism deployed on the platform.

In the LC LITE ecosystem, importers and exporters will directly establish smart contracts digitally replicating the LC instrument. Once a contract digitally seals, an importer submits the title to the trade to investors for the corresponding value. This contract value will then conditionally credit to the exporter with the amount appearing on the exporter’s eWallet. It will release once the pre-agreed trade conditions are met, thereby guaranteeing payment to the exporter.

The title and LC value will also appear on the investor’s eWallet as due for payment by the importer. Once the goods have shipped, exporters have the added benefit of being able to sell their units of value through the LC LITE marketplace to other participants within the ecosystem. If they choose to do this they can obtain early cash on the payment due. (Holders of the contract title will be able to discount it for early cash as well.)

Enterprise Times: what does this mean

Trade finance provider Incomlend created LC LITE. Incomlend is a global invoice exchange which enables trade parties to obtain early cash in exchange for cross-border export receivables which:

  • currently processes funding volumes worth some US$240m annually
  • hopes to reach more than $1bn in the next three years.

Its experience doing this is what provides the base for LC LITE. The company intends to deploy first in Asia and the Middle East, including Hong Kong, Singapore, China, Japan, South Korea and India.

To go up against traditional LC providers, like the major banks, is ambitious – and there is no shortage of competition from them either to use blockchain technology (q.v. Marco Polo, Batavia, SEB, TradeShift, among others). Nevertheless, for most exporters and importers the prospect of a simpler, faster and cheaper solution will be attractive, with one specific caveat. What is unclear about the LC LITE solution is how much depends on non-fiat currency handling. This (digital currency aspects) alone may add sufficient risk to outweigh the other, and palpable, advantages claimed by LC LITE.

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Reducing risk through AI

In the construction industry where standard forms and standard terms and conditions are regularly used, and in an era of the rise of the smart contract, …

Simon Tolson Stacy Sinclair BW 2019

Legal 2 main image

Some claim we are amid an AI armageddon, with every level of humanity set to be massively disrupted by artificial intelligence (AI). While much of this is hype, the reality within the practice of law is that AI is indeed beginning to have a substantial impact, especially in two key areas. The first, risk and contract management, will be discussed in this article, while a later article will consider the use of AI in predicting the outcome of disputes.

With greater collaboration between lawyers and clients, AI can bring superior efficiencies and efficacies to contract generation, review, analysis and management. Risk and contract management may sound boring and dull to some, but when it comes to keeping on top of your construction contracts, nothing could be more important. Any tool that assists in this respect and increases the chances for a project’s success is therefore essential and its use inevitable. It is only a matter of time before AI becomes part and parcel of daily contract and project management routines.

Assuming for the moment risk and obligation management is paramount: do you review all contracts before signing, regardless of the value? Do you have an efficient and automated means of monitoring all obligations and risks within all your contracts and an understanding of the differences or anomalies between each one?

Risk management may sound boring and dull, but Any tool that assists in this respect is essential and its use inevitable

While there is not any one piece of software that will solve all your problems, there are platforms and technologies available now that utilise AI and machine learning to address some of the questions posed above. Here we look at a few of the solutions available, particularly in the context of contract review/analysis and document automation.

The first step is to identify the issue you want to solve. What is the outcome you need or work stream you want to make more efficient? What is the risk you want to manage? In other words, identify the “use case”. Only once we identify the outcome required or problem to be solved can we set off shopping for and harnessing the various platforms/technologies to realise these objectives. It is a mistake to put the cart before the horse.

Contract review/analysis

There are a number of technologies that go some way to assist with contract review and analysis. For example, technologies that read documents for the analysis and extraction of data.

One such technology is an AI platform for document review, which provides insight into data and contracts. It utilises pattern recognition algorithms to understand text by context and content, not just by key-word searches.

Another example goes beyond simple contract clause searching and extraction and generates a detailed party-specific summary of obligations, liabilities and other meta-data from the contracts analysed. Each agreement, and its component issues, is assigned a risk rating based on the organisation’s specific risk policies.

In the context of construction, infrastructure and energy projects it is relatively easy to see how these types of technologies can be instrumental in contract review and analysis. The possibilities are endless: for example, a review of a vast number of contracts to highlight and categorise possible clauses/issues that require a lawyer then to analyse. This could be helpful in the situations where the majority of the agreements are nearly similar (but not quite) or where the agreements normally would not have been reviewed at all given their perceived risk or value position.

A second example would be extraction of key data and obligations from contracts across the project(s), or indeed the company, into spreadsheets, reports or other software to manage and monitor risk and liability. Perhaps if needed, these obligations/data can then even be linked to programming software to monitor key dates and milestones.

With greater collaboration and innovation between lawyers, their clients and emerging technology, greater efficiency and efficacy is possible. Development of tailored solutions and services will, we suggest, minimise risks and improve the management of contract obligations, at a lower cost.

Document automation

This is the second key area in which AI can help with risk management in construction. Also known as “contracting platforms”, it refers to technologies that aim to speed up the generation, negotiation and completion of contract documents between contracting parties.

One such platform automates the generation of the contract and provides live negotiation and analytics tools. It enables the user to create contract drafts that can then be negotiated with the other contracting party in real time. Contracts can also be analysed during the negotiation process to see how they have evolved.

Again, collaboration between lawyers and their clients to establish contract templates and workflows for contract negotiations and completion, with the use of AI-enabled technologies, will minimise risks where possible and enhance efficiencies. In the construction industry where standard forms and standard terms and conditions are regularly used, and in an era of the rise of the smart contract, it is only a matter time before the automation of contract generation and completion becomes the norm.

Simon Tolson is a senior partner and Dr Stacy Sinclair a senior associate at Fenwick Elliott

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Western Union Trials Ripple Technologies for Settlements Services Getting Ready for Crypto Surge

Western Union Trials Ripple Technologies for Settlements Services Getting Ready … So the blockchain and cryptocurrency space is rapidly evolving.

You found me. Imagine what I can find for you – and faster than your competition.

To read our story click here

I can not only find information about something, I can tell you what’s related to it, and where it is going. I can help you visualize connections between concepts, businesses, ideas and people. I can help you find the information that can make you the one that knew before everyone else. I make research more effective. I help due diligence become deeper and more meaningful to investors. I can organize your data so you can see unseen relationships that are creating an impact. I am #hiswai

This is what I can do for you:

A VC firm considers investing in a new cryptocurrency startup located in Nevada.

– The research analysts begin their due diligence of the startup’s directors, financials and market fundamentals

– #hiswai is used to map a variety of issues that surround the cryptocurrency market

– Strong relationships are found across a broad section of data that includes articles, references and government issued releases

– #hiswai shows strong relationships concerning SEC regulation, taxation, and security surrounding the venture

– The research team is able to assemble and consume the necessary references to produce their report – within minutes.

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