Republic of Serbia Securities Commission Approves Issuing of First Digital Token

The Republic of Serbia Securities Commission has approved for the Belgrade-based company Finspot the issuing of the white paper for the initial offering of 35,250 Finspot factoring tokens, with a nominal value of RSD 1,000 and a total initial offering value of RSD 35,250,000, it is announced.

With the approval of this white paper, Serbia is getting its first digital token, called Finspot factoring token (FIN). As the Securities Commission explained, the white paper is a document, similar to the prospectus in the process of issuing securities, which the issuer is obligated to publish and which contains data on the issuer of digital property, the digital property and the risks. It enables investors to make an informed decision on investing and to assess the risks related to investing in digital property.

A digital token is a type of digital property and it represents a non-material property right that represents one or several other property rights in a digital form. It could also include the right of the user of a digital token to have certain services provided to them.

A FIN gives the right to its owner to invest in one or more of the offered investment indices (a total of four indices), which are part of the Finspot portfolio. Investment indices differ in due dates and interest rates, so the owner of a FIN who has invested their tokens in one of the investment indices has the right to an interest as per the fixed interest rate which is calculated and is due based on the rate cited in the selected investment index.

By investing a FIN in a certain investment index, the owner becomes an investor and chooses the interest rate (7-10% depending on the due date of the index) and the time period of the investment, that is, the due date of the index (3-12 months).

After the due date of the index in which the FIN is invested, the invested FINs return to the investor by being transferred to their blockchain wallet, and the realized interest yield is paid in dinars to the investor’s account. The FINs which are returned after the due date of the index can be re-used by the investor for an investment in new investment indices which are on offer at the time, or the investor can sell the tokens for dinars, exclusively to the issuer of these digital tokens.

After the commission’s approval, the issuer will publish the white paper on its web pages no later than the beginning of the initial offering of digital tokens. The initial for the registration and payment of FINs will last 14 days from the announcement of the beginning of their initial offering at www.finspot.rs.

Serbia is among the first countries in the world which, thanks to the adoption of the Law on Digital Property, have created a regulatory framework for the field of digital property, providing a clear framework and legal security and certainty for investors and users of digital property, the commission points out.

The supervision over the implementation of this law has been entrusted to the National Bank of Serbia and the Securities Commission, considering that the law recognizes two types of digital property: virtual currencies and digital tokens.

According to the commission’s assessment, digital tokens are especially important as a form of alternative financing of young and innovative companies – startups.

Komisija za hartije od vrednosti Republike Srbije Beograd

FINSPOT DOO BEOGRAD

Securities Commission

Finspot Belgrade

digital token

issuing digital tokens

cryptocurrencies

Finspot factoring token

white paper Serbia

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