1. Choose the Asset Country

What's inside

• Regulatory Clarity

• Tax Implications

• Ownership & Transferability

• Compliance & Licensing

• Why This Step is Important

• How to Complete This Step

• Example: You want to tokenize a hotel property in Spain.

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Before you tokenize an asset, you need to determine which country’s laws apply to it. The country where the asset is physically located or legally governed will impact regulations, taxes, and ownership rules.

Some countries support tokenization, while others have strict restrictions or unclear laws. Choosing the right country ensures your tokenized asset is legally sound, tax-efficient, and attractive to investors.

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Regulatory Clarity

• Does the country have clear laws for tokenized assets and securities?

• If tokenization laws don’t exist, is there a general legal framework for digital or financial assets?

Some countries (e.g., Switzerland, Liechtenstein, Singapore) have strong legal frameworks for tokenization. Others lack clarity, making it risky to tokenize assets there.

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Tax Implications

• What are the capital gains taxes, transaction taxes, or VAT on tokenized assets?

• Does the country offer tax benefits for digital assets or foreign investors?

High taxes on token transfers or asset income can reduce investor returns. Some jurisdictions, like the Cayman Islands or UAE, offer tax-efficient structures.

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Ownership & Transferability

• Are there restrictions on foreign investors owning or transferring tokenized assets?

• Can fractional ownership (through tokens) be legally recognized?

Some countries do not allow foreign ownership of real estate or securities. If investors cannot legally claim their tokenized assets, their investment could be worthless.

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Compliance & Licensing

1. Does the country require a license (e.g., VASP, CASP) to issue tokenized securities?

2. Are there restrictions on public vs. private offerings?

If your asset country requires special licenses, you may need regulatory approval before tokenizing it. Non-compliance can lead to legal penalties or investor disputes.

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Why This Step is Important

• Regulatory Compliance – Ensures your tokenized asset follows the laws of its jurisdiction.

• Investor Transparency – Gives token holders clarity on the governing laws of the asset.

• Immutable Legal Record – Stores the asset’s jurisdiction permanently in the blockchain, making compliance audits easier.

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How to Complete This Step

• Step 1: Identify the country where the asset is physically located or legally governed.

• Step 2: Select one country from the Asset Country List.

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Example: You want to tokenize a hotel property in Spain.

• Spain allows real estate tokenization, but foreign ownership has legal restrictions.

• You consult legal experts and decide to register an SPV in the British Virgin Islands (crypto-friendly) while complying with Spanish real estate laws.

• Now, your asset is structured legally, and investors have clear rights to their tokenized shares.

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Choosing the right asset country is the foundation of a secure, legal, and transparent tokenized offering. Get this step right, and you’ll avoid legal risks and build investor confidence.