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

دانشنامه حقوق اقتصادی

Volume 30, Issue 24, March 2024, Pages 110-128   

Document Type: Scientific research

DOI: 10.22067/economlaw.2024.83165.1288

Authors

Fatemeh Teimoora¹; Kazem Yavari^{* 2}; Reza Najarzade³

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

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

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

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

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