Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Case: Developing an investment agreement for a crypto trader
Fyl Nazar A client – a trader who carries out investment activities in the cryptocurrency market, sought professional assistance in developing a comprehensive investment agreement.
The specifics of the activity involved managing client assets through a trust management mechanism in order to obtain investment income.
The main challenges in developing the agreement included the complexity of the legal regulation of the cryptocurrency market in Ukraine, the need to clearly define the rights and obligations of the parties, determine profit and risk distribution mechanisms, as well as the legal uncertainty of the status of virtual assets.
Work on the agreement involved a comprehensive approach that included studying the specifics of the client’s activities, analyzing the current practice of transactions with cryptocurrencies, and reviewing international and local legislation.
When developing the structure of the agreement, significant attention was paid to clearly defining terms and concepts, establishing the procedure for interaction between the parties, and regulating the processes of transfer and management of assets.
The key provisions of the agreement covered the subject matter of the agreement, which included the transfer of assets into trust management (USDT), the mechanism for investing in the cryptocurrency market, and the procedure for returning and accounting for assets.
Financial terms were also detailed, determining the share of profit for the manager and the principal, the procedure for settlements, accounting and reporting.
Particular attention was paid to risk management through a clear delineation of financial risks, the creation of mechanisms for minimizing potential losses and establishing conditions for early exit from the agreement.
An equally important element was the communication component with detailed reporting regulations, defined communication channels and the procedure for informing about the status of investments.
As a result, a comprehensive investment agreement was created that ensures transparency of relationships, minimizes legal risks, establishes clear rules of interaction and protects the interests of both parties.
This agreement takes into account the specifics of the cryptocurrency market and the lack of full-fledged legislative regulation, created taking into account international practice and local features of the legal field.
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