Encyclopedia of Economic Law Journal

Investigating the Legal Aspects of the Initial Coin Offering: The New Method of Financing on the Blockchain Platform in Iran

Document Type : Scientific research

Authors

Fatemeh Teimoora 1
Kazem Yavari 2
Reza Najarzade 3

1 PhD Student in International Economics, Facility of Economic and Management, University of Tarbiat Modares, Tehran, Iran

2 Professor, Department of Economics, Faculty of Law,Political Science and History, Yazd University, Yazd, Iran

3 Associate Professor, Department of Economics, Faculty of Economic and Management, Tarbiat Modares University, Tehran, Iran

https://doi.org/10.22067/economlaw.2024.83165.1288
Abstract
In today's era, with the advent of blockchain technology and its inherent features, it is possible to finance in new ways, such as the initial coin offering for businesses, especially SMEs, to attract significant capital from all over the world has been realized. Although the legal dimensions of the recent phenomenon are not clear to the activists of this field or the governing institutions due to its emerging nature, but because of its high attractiveness, this market has always been able to increase the number of its enthusiasts in both investment and supply procedures.
The recent research aims to explain the dimensions of the initial coin offering method as a new financing method in the blockchain platform, the necessity of its existence in accordance with the characteristics of SMEs as the engines of the country's growth, and to Analyze its dimensions in the current laws of the country.
The findings of the recent research show that the financing of SMEs through the method of initial coin offering or the investment of those interested in this field does not contradict the explicit text of the existing upper laws, therefore in legal system of Iran's current law is capable of implementation, and in order to legitimize it, it needs to be recognized by legislative and regulatory institutions. The recognition of SMEs issuable tokens backed by the company's assets and final product by the CentralBank and the Securities and Exchange Organization makes it possible for domestic businesses to benefit from this innovative method.

Keywords

Financing
Blockchain Technology
Initial Coin Offerings
SMEs
Token

©2024 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

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  • Receive Date 08 October 2023
  • Revise Date 08 January 2024
  • Accept Date 14 February 2024

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