New developments in the area of distributed ledger technology ("DLT") have led to the emergence of Digital Asset Generating Events ("DAGEs"), techniques with which organizations raised nearly $ 21.6 Billion in 2018.
In September 2017 a White Paper produced by the LHoFT in collaboration with Stellar, aimed to explain the functioning of DAGEs, why they are favoured by new businesses (and particularly those active in DLT technologies), key benefits and risks for issuers and investors; as well as the regulatory considerations required to keep nurturing innovation. It was produced with the aim to educate people interested in DAGEs, be it authorities, DAGEs issuers, financial services professionals, or others.
This working paper aims at providing an analysis of the existing regulatory and legal framework and its application to the fund raising mechanism called Digital Assets Offering or Digital Asset Generating Events ("DAGE"), as well as discussing certain options to address these offerings within the Luxembourg regulatory framework in the future.
You can download the whitepaper here.