Date: 01.09.2022What is the purpose of a white paper for an ICO?
For ICOs, “white papers” are often produced. These documents can contain information on the intended purpose of the business, the persons involved and the technical details of the tokens. However, these white papers are not yet* regulated and those who issue them are free to design their form and content as they choose. White papers are used primarily for PR and communication. It has become clear that information in white papers is often not comprehensive and precise enough, that the content of white papers is changed during the course of the ICO, and that the information provided in white papers does not necessarily have to correspond to the actual design of the token. This means that investors are not sufficiently protected. White papers are not comparable with prospectuses for securities and capital investment or with legally prescribed information sheets, as they are not information documents for which the company is liable.
*European legislators are proposing to issue a regulation to regulate crypto assets and related activities, the “Markets in Crypto-Assets Regulation” (MiCA). This regulation is also intended to place white papers under a regulatory regime.
