LegalBison implements regulatory compliant corporate structure for ACM

First Look at ACM

All Crypto Mechanics, commonly known as ACM, was established in 2023 by Benjamin Jakob and Andreas Fleischhacker. The initial idea that later came into being with LegalBison’s assistance was to build a complex ACM Ecosystem that would allow users to get the most out of blockchain resources.

Today, ACM is a flourishing crypto trading platform that combines advanced blockchain-based resources in one single ecosystem. The complex itinerary of conceptualizing the primary project idea and turning it into reality was built for ACM by LegalBison.

Challenges & Solutions with LegalBison

Having embarked on the task, LegalBison provided ACM with detailed legal advice and guidance, assisted the project with corporate structuring and obtaining, among others, the VASP authorization to ensure full regulatory compliance. Here, LegalBison will introduce each of the stepping stones of this major project.

1. Issuing a native ACM token

The issuance of a crypto token is a multifaceted process that requires professional legal assistance. LegalBison applied its knowledge of the regulatory subtleties to implement ACM’s token project in full compliance with them.

Launching a native token in a legally compliant way

The route of the ACM started with launching the company’s native utility token through the Initial Token Offering (ITO) in a transparent and legally compliant manner. The main purpose of the token issuance was to launch the future company and fully prepare it for stepping into the market.

Preserving the characteristics of a token

An integral part of the token issuance process was to ensure that the ACM native token counts as a utility token rather than a security token. LegalBison consulted ACM Finance on the necessary changes in the token structure that would classify it as a utility token from the regulator’s point of view.

2. Securing a VASP license

A trustworthy and credible crypto company cannot exist without a license. Choosing a fitting regulator for the client’s project goals was one of LegalBison’s main responsibilities.

Choosing a suitable jurisdiction

The next step towards registering ACM Finance was to assist the client with choosing the most fitting regulator according to the project’s budget and timeframe. LegalBison assessed the scope of jurisdictions that license crypto exchanges and proposed the most optimal options to the client.

Licensing the full scope of business models

In order to ensure full compliance of the entire ACM Ecosystem, LegalBison analyzed the services that ACM Finance intended to provide. Then, the legal team outlined the results in the form of a Legal Opinion which included the business models comprising ACM and proper legal advice on licensing each of them. The Legal Opinion worked as a basis for reaching the final verdict on the most suitable regulator for ACM Finance.

3. Opening a crypto-friendly corporate bank account

A corporate bank account is an integral part of any company. At the same time, when the company is dealing with crypto assets, opening a bank account comes with certain complications.

Finding a crypto-friendly banking solution

LegalBison helped ACM Finance reach yet another important milestone, which was securing an optimal crypto-friendly banking solution. The main challenge was to find a credible bank that was willing to work with a crypto company. Relying on its experience in tackling similar tasks, LegalBison helped ACM Finance obtain a crypto-friendly corporate bank account without any complications.

4. Ensuring the full AML-CFT and GDPR compliance

One of the primary concerns of any regulator is how well the licensee fulfills the AML-CFT compliance obligations. This is another aspect in which LegalBison’s assistance is required.

Obtaining enough know-how to comply with AML-CFT and GDPR

Since ACM Finance chose the VASP authorization, ensuring AML-CFT compliance according to the regulatory standards was one of the primary concerns. In addition, it was important to put the project in line with the GDPR, which was another task undertaken by LegalBison. The legal team guided ACM Finance on the compliance procedures and drafted all the necessary paperwork.

Putting AML-CFT compliance into practice

Once LegalBison acquainted ACM with the AML-CFT compliance requirements, the provided education was put into practice. Apart from preparing the compliance documents, the legal team educated the key shareholders of ACM Finance on AML standards by setting up compulsory AML-CFT compliance training. In this way, AML compliance was effectively integrated into the processes of the company.

Filling in the role of a compliance officer

The last step in ensuring full AML-CFT compliance was to assign a compliance officer. LegalBison assisted ACM Finance with finding a suitable individual to fill the role of the AML officer responsible for implementing and maintaining the AML program and the risk assessment framework within ACM.

5. Providing ongoing legal support

It is essential that LegalBison provides its client with continuous support even after the company is successfully launched.

Ensuring constant uninterrupted compliance

LegalBison closely monitors the regulatory compliance of ACM, adapting the project to the licensing requirements that are currently in place. By having a trustworthy legal partner such as LegalBison by its side, ACM Finance can promptly fill any possible compliance gaps.

Keeping up with possible regulatory changes

Another objective of ongoing legal support is to notify ACM Finance about any possible changes or amendments in the legal framework of the regulator; ensuring, among other things, that the company’s compliance is constant and watertight. In the future, this process will also include preparing ACM Finance for the upcoming MiCA regulation that will come into force later in 2024.

Conducting regular reports to the licensing authority

To this day, LegalBison assists ACM Finance with mandatory reporting to the licensing authority. Furthermore, the legal team has undertaken the preparation of all the regular compliance reports according to the requirements of the licenser.

Why LegalBison?

“ACM Finance entrusted LegalBison with the legal side of launching our company because their lawyers are best acquainted with the subtleties of the industry and the regulatory frameworks which are constantly changing. LegalBison excels at adapting to challenges and demonstrates a perfect understanding of our business needs.” 

• Andreas Fleischhacker, CEO and Co-Founder of ACM Finance

Conclusion

LegalBison is proud of its successful cooperation with All Crypto Mechanics and keeps providing an all-round legal advice and support to the company.

What did LegalBison do?

LegalBison successfully provided the following services to the ACM Finance team.

• Consulted on choosing a suitable regulator
• Assisted with corporate structuring
• Ensured full AML-CFT compliance
• Opened a crypto-friendly bank account
• Provided ongoing legal support

How did LegalBison do it?

A dedicated legal project manager was assigned to streamline and control the process of licensing, structuring, and launching ACM. This allowed for better time management for the client since LegalBison took over all the organizational processes. Throughout the cooperation, LegalBison and ACM set up regular touchpoints to ensure a streamlined process and answer any questions that might have arisen on the client’s side.

The benefits of working with LegalBison

LegalBison fully undertook the administrative legal matters of the case, including the paperwork and communication with the regulator, which allowed the client to focus on business. Due to LegalBison’s around-the-clock presence and assistance, ACM knows that it has a strong and experienced legal partner who ensures the company’s uninterrupted regulatory compliance.