- May 1, 2019
- Posted by: the_main_admin
Blockchain developer, expertise in Vue JS framework and Firebase Database system
Blockchain developer, expertise in Vue JS framework and Firebase Database system
The IPN token is a pure utility token and is not a profit investment. iProtocol does not provide any compensation for further profits to an IPN token holder. IPN token do not provide ownership of the stocks or assets of iProtocol Company instead the token holder have the rights to access in the vast feature of iProtocol application system. Yet iProtocol have met and passed all the required jurisdiction and tests over to the transparency which is based in Ireland.
The “Howey Test” is a test created by the Supreme Court of United State for determining whether certain transactions qualify as “investment contracts.” If so, then under the Securities Act of 1933 and the Securities Exchange Act of 1934, those transactions are considered securities and therefore subject to certain disclosure and registration requirements.
A security is found to exist when all four of these elements exist:
iProtocol strictly ensures that none of these elements are not applicable in any process of its ICO.
Questions of Howey Test:
Answering the questions makes sure to identify iProtocol as “Utility Token”
Q1. Are the token holders allowed to provide funding for the company’s capital and receive a portion of the profits?
Q2. Does the fundraising effort of the ICO entail investment in the project where profits are generated entirely from the effort of individuals other than the creators or founders of the project?
iProtocol Utility tokens are not intended to give their holders the ability to control how decisions are made in this company. iProtocol merely enable users to interact with iProtocol vast application services.
Registration by Ireland
iProtocol Network initial coin offering (ICO) are regulated by the nature of jurisdiction in Ireland to contribute and distribute IPN token. iProtocol as a pure utility token has its determination with the act of the Irish government and CBI. iProtocol also determine to comply with any further regulation and jurisdiction by Irish government or CBI.
As per current laws in Ireland of offering digital assets ensuring the term with existing securities law, financial services regulation and other applicable laws ( including banking, payment services, data protection and consumer protection legislation ).
The European Securities and Markets Authority (“ESMA”) issued a statement to this effect in November 2017, in which it mention to the firms involved in ICOs to the need to meet relevant regulatory requirements. ESMA identified, on a non-exhaustive basis, four key applicable EU directives, all of which are either directly applicable in Ireland or have been transposed into Irish law by local regulations. These are:
iProtocol ensures the consistency of these regulation as a utility token as describe below:
The Prospectus Directive
The Prospectus Directive, as implemented in Ireland by S.I. No. 324/2005 (Prospectus (Directive 2003/71/EC) Regulations 2005), as amended, (the “Irish PD Regulations”) aims to ensure that adequate information is provided to investors by companies when raising capital in the EU. The Irish PD Regulations require the publication of a prospectus before an offer of securities to the public in Ireland or the admission of securities to trading on a regulated market situated or operating in Ireland, unless certain exclusions or exemptions apply. Such a prospectus must be prepared in accordance with the detailed content requirements of EU law and requires to be approved by the Central Bank of Ireland, the Irish supervisory authority (or by the supervisory authority of another EU member state and passported into Ireland).
For the purposes of the Prospectus Directive and the Irish PD Regulations, “securities” means “transferable securities” as defined by Article 4.1(44) of MiFID II (with the exception of “money market instruments” as defined by Article 4.1(17) of MiFID II having a maturity of less than 12 months).
Article 4.1(44) of MiFID II defines “transferable securities” as:
those classes of securities which are negotiable on the capital market, with the exception of instruments of payment, such as:
General guidance and commentary on this definition has identified three formal criteria and one more substantive criterion for a security to be considered a “transferable security”. The three formal criteria are that a security must be: (i) transferable, (ii) negotiable on the capital market (which is a concept that goes beyond legal transferability, and considers the practical ease of transferability and trading of the securities) and (iii) standardized (such that the security can belong to a class). The more substantive criterion is that a security must belong, or be comparable, to the non-exhaustive list of examples given in sub-paragraphs (a) to (c) of the definition of “transferable securities”.
The three formal criteria of being transferable, negotiable and standardized digital assets which fall within, or are comparable to the non-exhaustive list of securities given in sub-paragraphs (a) to (c) of the definition of “transferable securities” will be treated as such. This would include digital assets (categorised as “asset tokens/security tokens”) which represent a debt or equity claim on the issuer and are analogous to, or contain features of, equities or bonds, together with digital assets in the form of, or comparable to, options or derivatives.
On the other end, based on current law and practice, the digital assets (commonly categorised as “utility tokens”) which are only intended to provide access digitally to currently available applications or services, are unlikely to be “transferable securities”.
Digital assets (commonly categorised as “payment tokens” or “currency tokens”) intended to be used as a means of payment for acquiring goods or services should not, based on current law and practice, be considered “transferable securities” on the basis that they qualify as instruments of payment.
MiFID II, as implemented in Ireland by S.I. No. 375 of 2017 (European Union (Markets in Financial Instruments) Regulations 2017), as amended, (the “Irish MiFID II Regulations”), aims to create a single market for investment services and activities and to ensure a high degree of harmonized protection for investors in “financial instruments” in the EU.
A firm that provides regulated investment and ancillary services in relation to “financial instruments” as defined by the Irish MiFID II Regulations needs to comply with MiFID II requirements as implemented in Ireland, including being appropriately authorised by the Central Bank of Ireland (or the supervisory authority of another member state of the EU). In addition to “transferable securities”, “financial instruments” include those instruments listed in Schedule 1, Part 3 of the Irish MiFID II Regulations. Instruments of payment are not “financial instruments”.
In the case of digital assets (whether in the form of tokens, coins or otherwise), where the coin, token or other asset qualifies as a “transferable security” or other “financial instrument”, the process by which the digital asset is created, distributed or traded is likely to involve some MiFID II investment services such as placing, dealing in or advising on “financial instruments”, requiring authorisation from the Central Bank of Ireland (or the supervisory authority of another member state of the EU).
The operation of a trading platform for “transferable securities” and other “financial instruments” is a regulated investment service that requires authorisation under the Irish MiFID II Regulations. Accordingly, if the digital assets to be traded comprise “transferable securities” or other “financial instruments”, a MiFID II authorisation will be required. If the digital assets to be traded are not “transferable securities” or other “financial instruments”, as is likely the case with pure utility tokens and payment tokens based on current law and practice, no MiFID II authorisation will be required.
AIFMD, as implemented in Ireland by S.I. No. 257 of 2013 (European Union (Alternative Investment Fund Managers Regulations 2013), as amended, (the “Irish AIFMD Regulations”), lays down the rules for the authorisation, ongoing operation and transparency of the managers of alternative investment funds (“AIFMs”) which manage and / or market alternative investment funds (“AIFs”) in the EU. An “AIF” is defined in the Irish AIFMD Regulations as a collective investment undertaking, including investment compartments thereof, which raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors (other than a collective investment undertaking that requires authorisation under the UCITS Directive (Directive 2009/65/EC).
An AIFM covered by the parameters of the Irish AIFMD Regulations is not permitted to manage or market relevant AIFs unless authorised to do so by the Central Bank of Ireland (or the supervisory authority of another member state of the EU).
Depending on how it is structured, an offering of digital assets could qualify as an AIF, to the extent used to raise capital from a number of investors with a view to investing the capital raised in accordance with a defined investment policy for the benefit of those investors. Firms involved in ICOs may therefore need to comply with AIFMD rules, including the requirement to be authorised. In particular, AIFMD provides for capital, operational and organisational rules and transparency requirements.
4AMLD prohibits money laundering and terrorist financing. It applies to obliged entities including credit institutions and financial institutions, the latter including MiFID II investment firms, collective investment undertakings marketing their units or shares and firms providing certain services offered by credit institutions without being one.
4AMLD requires obliged entities to carry out due diligence on customers and to have in place appropriate record-keeping and other internal procedures. Firms have an obligation to undertake monitoring and report any suspicious activity and to co-operate with any investigations by relevant public authorities. While 4AMLD has not yet been fully transposed into Irish law, it builds upon earlier anti-money laundering directives, which have been transposed, with the relevant Irish legislation to be found in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended.
Neither the provisions of 4AMLD nor the provisions of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, currently apply to the operators of cryptocurrency exchanges unless they are required to be authorised for the purposes of the Irish MiFID II Regulations (i.e., if they facilitate the trading of digital assets that are “transferable securities” or another category of “financial instrument”).
Services of iProtocol
iProtocol ensure its services at the application system to not conflict with any securities law and make sure as a pure utility token for its token holder. The contributors of iProtocol token holder reserve the token to their wallet and get accesses to the application services. Below its highlighted the major features of iProtocol application system:
The definition of all services above is explained over to this documentation below.
You may pass the KYC procedure at any time, before or after purchasing IPN tokens, during the token sale or after the end of the token sale. There are no time restrictions here. Once you fill the KYC form, iProtocol team will check it manually and send you the confirmation through your iprotocol account and email that you are passed or not. Maybe iProtocol will ask you to resubmit your documents if those are unrecognizable or face any problem. When you pass the verification, you will be able to withdraw your IPN tokens to your Etherium wallet or any ERC20 compatible wallet from the last day of the token sale or hold the token to the iProtocol wallet for further uses. If you do not pass the verification procedure, iProtocol will issue you a refund yet iProtocol will give you a chance to resubmit the documents again. Just keep in mind that you have valid documents like passport, national ID or driving license and you are not from ICO restricted country like USA, NORTH KOREA, IRAN or others as defined below.
Who can participate in this ICO:
In the iProtocol network ico we welcome and accept any contributors except for citizens or residents of the following
Privacy and Data protection policy
Iprotocol Network is committed to protecting and respecting your privacy.
This policy sets out of the basis on which any personal data we collect from you, or that you provide to us, will be processed by us.
Please read the following carefully to understand our views and practices regarding your personal data and how we will treat it. By visiting www.iprotocol.network you are accepting and consenting to the practices described in this policy.
Collection and use of personal information:
iProtocol Network collects personal information that you voluntarily provide on this website, which includes your name, address, e-mail address, country including other contact information.
iProtocol Network collects personal information when you register to receive more information about certain Iprotocol Network services or products Iprotocol Network uses this information to communicate with you and to provide you with your requested information.
From time to time Iprotocol Network may request for additional personal information from you, such as information validating your address or other available personal information like passport, driving license, national ID card, photograph etc. This is to help Iprotocol Network maintain the accuracy of the information it collects and to help Iprotocol Network provide a better service.
With regards to each of your visits to our site will automatically collect the following information:
Technical information, including the Internet protocol (IP) address used to connect your computer to the Internet, your login information, browser type and version, time zone setting, browser plug-in types and versions, operating system and platform.
information about your visit, including the full Uniform Resource Locators (URL), clickstream to, through and from our site (including date and time), products you viewed or searched for, page response times, download errors, length of visits to certain pages, page interaction information (such as scrolling, clicks, and mouse-over’s), methods used to browse away from the page, [OTHER] and any phone number used to call our customer service number.
Iprotocol Network may collect usage information from visits to the website to help provide better customer service. Iprotocol Network may use this data to analyze trends and statistics and to help provide better customer service.
Iprotocol Network will collect such information through the use of various technologies, including “cookies”.
The cookie may then be stored on your computer as an anonymous tag that identifies your computer but not you. You can set your browser to notify you before you receive a cookie, giving you the chance to decide whether to accept it.
You also can set your browser to turn off cookies. If you do so, some pages may not work properly and you do this at your own risk.
Disclosure of personal information:
You agree that we have the right to share your personal information with:
You have the right to ask us not to process your personal data for marketing purposes. We will usually inform you (before collecting your data) if we intend to use your data for such purposes or if we intend to disclose your information to any third party for such purposes.
You can exercise your right to prevent such processing by checking certain boxes on the forms we use to collect your data. You can also exercise the right at any time by contacting us at firstname.lastname@example.org
Our site may, from time to time contain links to and from the websites of our partner networks, advertisers and affiliates. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies.
Please check these policies before you submit any personal data to those websites.
iProtocol Network and members, intending to be legally bound, and in consideration of the mutual promises and covenants contained herein, agree as follows:
Membership Sign Up
Member’s promises: Members with full capacity for civil rights and capacity. Or members not have full capacity for civil rights and capacity, but when members click agree to sign up button, this website will deem this action to be approved by members’ legal agent and sign up by his/her legal agent to use this website.
Member’s promises: Membership sign up is not conducted for the purpose of violating laws and regulations or undermining the operation of iProtocol Network official website.
This website provides members with platform services for investing in or supporting iProtocol Network
Members promise to abide by the following service rules of iProtocol Network official website:
Such as sending information that violates laws, regulations, public order, good customs and infringes upon the rights and interests of others, sending pyramid selling materials or other harmful information or comments, using or forging the email header information of the iProtocol Network official website without the authorization of iProtocol Network.
Members shall be fully responsible for any operation and consequences of using their iProtocol Network official accounts and passwords, mobile phones and email verification codes.
Members shall immediately and effectively inform iProtocol Network and require iProtocol Network freeze the account when members found iProtocol Network website account, password and verification code used by the third party without being authorized or existing other account security problems.
iProtocol Network has the right to take action on the urgent requests of its members within a reasonable time, but iProtocol Network will not take any responsibility for the losses of members before taking action.
Members shall not give the official account of iProtocol Network to others by gift, loan, lease, transfer or other means without the consent of iProtocol Network
Members’ Rights and Obligations
Members promise to abide by the following regulations of iProtocol Network official website when using iProtocol Network official website.
Members should carefully read all the contents contained in the transaction information when members browse the trading information on the iProtocol Network official website, including but not limited to iProtocol Network price, transaction fee and withdrawal address.
Members should fully accept all information contained in the transaction information before clicking the button for transaction.
Members can check the corresponding transaction records through the transaction details on the official website and confirm their transaction details.
Members have the right to cancel or modify the transaction information at any time before the deal is reached.
iProtocol Network's Rights and Obligations
iProtocol Network have the right to claim compensation from the aforementioned members or their legal representatives for losses incurred thereby.
Meanwhile, iProtocol Network reserves the right to decide whether to accept membership sign up under any other circumstances.
When iProtocol Network terminates one or more services of the official website, the termination will take effect from the day when the official website publishes the notice of termination on the website.
Within the scope permitted by law, no matter under what circumstances, this website will not responsible for the member’s loss caused by network equipment maintenance, network connection failure, computer, communications or other system failures, power failures, strikes, labor disputes, riots, insurrection, productivity or insufficient productive resources, fire, flood, storm, explosion, war, government behavior, force majeure or other third party non action service or delay.
Members shall not copy, change, send or use any of the aforesaid materials or contents for commercial purposes.
Members shall not publish or authorize other websites (and media) to use the information already published on the iProtocol Network official website in any form.
Change and Termination of This Agreement
iProtocol Network has the right to change the content of this agreement or other service terms and operating rules published by the official website at any time.
This change will be announced in a prominent position on the official website and shall come into force upon publication of the notice.
It is deemed that the members to be agreed to the content changes if members continue to use iProtocol Network website services.
If members do not agree with the changed content, the members have the right to cancel the iProtocol Network official account and stop using the iProtocol Network official website.
Including but not limited to requiring the official website to keep or disclose to members any information in its original account on the official website or forward to members or third parties any information they have not read or sent.
AML (Anti-money Laundering)
iProtocol Network has the right to refuse to sign up or cancel members’ sign-up accounts when iProtocol Network has reasonable reasons to suspect members sign up with a false identity.
Responsibility for Breach of Contract
The Entry into Force and Interpretation of the Agreement
This agreement shall come into force when members click to approval sign up page of iProtocol Network official website and complete the sign-up procedures and obtain the account number and password of iProtocol Network official website, this agreement binding on this official website and members of iProtocol Network.
In particular, but not exhaustive, you understand the inherent risks listed below:
Risk of software weakness: you understand and accept that the Underlying software application and software platform (i.e. the Ethereum blockchain) is still in an early development stage and unproven that there will be no warranty that the process for creating IPN tokens will be uninterrupted or error free and there is an inherent risk that the software could contain weakness, vulnerabilities or bugs causing, inter alia, the complete loss of ETH and/or the IPN tokens.
Regulatory risk: you understand and accept that the blockchain technology allows new forms of interaction and that it is possible that certain jurisdictions will apply existing regulations on, or introduce new regulations addressing, blockchain technology based applications, which may be contrary to the current setup of the iProtocol Network platform and which may, inter alia, result in substantial modifications of the iProtocol Network platform, including its termination and the loss of IPN tokens for you.
Risk associated with other applications: you understand and accept that the iProtocol Network platform and products may give rise to other, alternative projects, promoted by unaffiliated third parties, under which iProtocol Network will have no intrinsic value.
Risk of loss of private key: your IPN tokens are held by using and Ethereum wallet with a combination of your account information (address), private key and password until iProtocol goes with its own smart contract. The private key is encrypted with a password. You understand and accept that in the event your private key file or password respectively is lost or stolen, the IPN tokens associated with your account (address) or password will be unrecoverable and will be permanently lost.
Risk of theft: you understand and accept that the underlying software application and software platform (i.e. the Ethereum blockchain) may be exposed to attacks by hackers or other individuals that could result in theft or loss of IPN tokens or ETH, impacting the ability to develop the iProtocol Network platform.
Risk of Ethereum mining attacks: you understand and accept that, as with other cryptocurrencies, the blockchain used for the IPN tokens is susceptible to mining attacks, including but not limited to double spend attacks, majority mining power attacks, “selfish-mining” attacks and race condition attacks.