Lex Exchange advised on ‘Australia’s first digital currency exchange token offer’
Hall & Wilcox has advised Lex Exchange on what’s being touted as the first digital currency exchange token offer in Australia.
Firm: Hall & Wilcox (Lex Exchange)
Deal: Lex Exchange has been advised on its digital currency exchange token offer.
Value: Through the digital currency exchange token offer, Lex Exchange plans to raise between US$2 million and US$12 million, according to a statement from Hall & Wilcox.
Key players: The Hall & Wilcox team was led by special counsel John Bassilios, with assistance from lawyers Joni Pirovich and Will Francis, partner Anthony Bradica and special counsel Jim Koutsokostas.
Deal significance: Lex Exchange provides cryptocurrency exchange services.
Its “Australian-first” digital currency exchange token offer included a “world-first” detailed tax disclosure, the statement from Hall & Wilcox said.
“We are proud to have been involved in the first offer of a digital token by a digital currency exchange in Australia and the first whitepaper in the world (that we are aware of) to include detailed tax disclosure for acquirers of the token,” said Mr Bassilios.
“Our cross-section blockchain practice group has the skills to advise on all blockchain-related matters from regulatory (including AFSL and AML/CTF) to tax to IP/IT and general corporate commercial.”
Commenting further, Ms Pirovich said the Hall & Wilcox team and Lex Exchange engaged early with the Australian Taxation Office regarding the tax implications of the token sale so that any material tax risk could be managed proactively.
“This is a world-first detailed tax disclosure, which will help those acquiring tokens to be informed upfront about the general tax consequences of acquiring and using the tokens,” she said.
“The detailed tax disclosure sets a best practice standard, which we hope will be replicated for other token offers in Australia and in the world.”