What We Do

Charltons is a Hong Kong law firm which has experience in blockchain technologies, fintech, crypto and virtual assets regulation (including virtual exchanges, security token offerings (STO), initial coin offerings (ICO), non-fungible tokens (NFT) and decentralised finance (DeFi)), funds, corporate finance and mergers and acquisitions (M&A).

Our network with Law Consults of India enables us to collaborate and deliver comprehensive legal services that are commercially sensible and specific to the legal issues that may arise.

In an era marked by a technological revolution, the advent of Blockchain, Crypto Currencies, Crypto Tokens, the Metaverse, and Web 3.0 signals a significant shift in the legal paradigm. To navigate this evolving terrain, Charltons of Hong Kong works in close cooperation with Law Consults of India to provide practical solutions. Their collective proficiency in blockchain technologies, fintech, and virtual assets regulation spans across virtual exchanges, STOs, ICOs, NFTs, DeFi, funds, corporate finance, and M&A, positioning them as leaders in this transformative age.

Comprehensive Legal Services

The extensive experience of Charltons of Hong Kong networked with Law Consults of India is crystallized in our Web3 and digital assets team, proficient in devising dynamic solutions and adept at steering through the fluctuating legal, regulatory, and compliance currents. Our suite of services includes:

• Establishing entities for crypto and virtual asset ventures.
• Providing strategic planning and legal advisories to chart through new fiscal landscapes.
• Structuring projects to ensure legal compliance within the crypto and virtual assets realm.
• Crafting and negotiating agreements that resonate with the nuances of the digital era.
• Conducting due diligence for a breadth of transactions, with an accent on digital asset deals.
• Advising on transactions related to crypto and virtual assets, including those pertaining to technology, smart contracts, custody, tokenization, mining, and digital asset protection.
• Offering guidance on DAO, STO, ICO, NFT, and DeFi-related frameworks.
• Handling cryptocurrency disputes with options for litigation, arbitration, and mediation.
• Providing comprehensive consultations on a range of legal, regulatory, and compliance matters, such as intellectual property, data privacy, licensing, capital raising, and taxation

Staged Approach to Legal Services

Stage I: Conceptual Foundation: At this initial stage, we engage with Product Developers who have invested their resources into bringing a concept to life and are now standing at the threshold of market entry. Our role is to:

• Review and refine the conceptual framework of the product.
• Provide a legal feasibility assessment for the prototype.
• Advise on intellectual property protection and preliminary market strategy.

Stage II: Strategic Incorporation: Once the foundation is set, we move towards establishing a legal entity by:

• Selecting an optimal jurisdiction that aligns with the product’s future market and regulatory advantages.
• Analyzing the tax implications and advising on efficient tax structuring for the entity and its Directors.
• Choosing the most beneficial legal form—whether a company, foundation, or trust—and preparing the necessary documentation.
• Drafting and finalizing the charter, constitution, and foundational corporate governance documents.
• Facilitating the incorporation process, including liaison with local authorities and compliance with regional regulations.

Stage III: Internal Structuring and Compliance: With the legal entity in place, our attention shifts to internal mechanisms:

• Crafting agreements with marketing companies to ensure the product reaches its audience effectively while protecting the Developer’s interests.
• Negotiating and drafting agreements with service providers and designers, ensuring all collaborations are clear, fair, and legally sound.
• Producing a comprehensive White Paper that serves as a declarative document for the product’s intent, technological underpinnings, and business plan.
• Implementing regulatory compliance checks and balances, adapting to local laws to ensure smooth operation.

Stage IV: Capital Formation and Fundraising: A critical phase, we provide extensive legal support in securing funding:

• Delivering categorization and legal analyses of tokens or NFTs to determine the applicable regulatory framework.
• Drafting Memorandums and Agreements for SAFT to secure future funding while mitigating legal risks.
• Structuring and advising on Purchase Agreements for tokens, with a keen eye on compliance and investor protection.
• Consulting on the tax implications of fundraising activities and recommending optimized structures for capital receipt.
• Addressing cross-jurisdictional complexities in technical agreements when the funding and technology development entities are distinct and international.

Stage V: Ongoing Security and Corporate Hygiene: Post-fundraising, we ensure sustained compliance and security:

• Advising on strategies to protect personal and corporate assets, limiting liability, and structuring indemnities for promoters and directors.
• Consulting on post-fundraising strategies, including reinvestment, additional rounds of funding, or technology scaling.
• Instituting good corporate governance practices to avoid legal pitfalls, maintaining corporate hygiene, and preparing for potential audits or regulatory reviews.