This story is published with permission from the Wyoming Economic Development Association.
WEDA is a statewide nonprofit professional association representing nearly 200 economic development members and organizations. The organization provides mentorship, education and networking opportunities to help the professional development of local leaders.
What would you do to guarantee that your business was on firm legal footing? For companies in the blockchain space the answer is easy - move to Wyoming.
Few states have passed legislation classifying or regulating blockchain businesses. For most, this creates a risky situation. No legislation means individual agencies and local governments have the authority to treat each blockchain company with a different set of rules, restrictions and guidelines.
This is no way to operate and makes it difficult, if not impossible, to develop a business plan and operate strategically.
As a result, many blockchain companies have chosen to locate overseas. Fortunately, Wyoming is doing things differently.
In 2017, the legislature was forward-thinking and passed bills classifying blockchain companies as a utility. These bills created a framework from which companies can safely operate, leading more blockchain companies to choose Wyoming as their headquarters.
NODE Haven chose Wyoming because of pro-blockchain legislation
Prior to selecting Wyoming for their business location, NODE Haven reviewed options around the world. The 2017 legislation was the primary reason the blockchain hardware manufacturing company chose to base their headquarters here.
“When we saw Wyoming was friendly to cryptocurrency and blockchain, we found a community willing to work with us and allow us to stay in the U.S. Wyoming having rules and laws in place makes it safer for blockchain businesses to operate here. That legislation made it possible to place our corporate office in Wyoming” said Charles Dusek, NODE Haven CEO.
NODE Haven was among the first companies to take advantage of the legislation giving blockchain companies the same designation as a utility company.
“Other blockchain companies are coming to Wyoming as well, which is good for the ecosystem and for collaboration” Dusek said.
About NODE Haven
The company will manufacture the equipment used to mine for Bitcoin, something that until now has been controlled by a small group of manufacturers. These cryptocurrency mining and equipment manufacturers decide if they want to use their most advanced equipment in their own mine or sell the equipment to other miners.
Typically, they do what is most profitable, so the larger manufacturers take the best equipment for their own mine and sell their old equipment to independent miners who cannot compete when using the lesser grade equipment.
NODE Haven is leveling the playing field by enabling independent miners to access advanced technology as it becomes available. Independent miners will purchase a token from the company that will work like a membership and give them access to the latest equipment.
Wyoming laws and SEC regulations work together
NODE Haven has begun selling its token. Since the equipment is not yet available, they chose to offer it as a security through a Reg D offering.
The company’s legal team used the Wyoming bills to craft how the token is used within their platform to ensure the company is both Wyoming and SEC compliant. This includes taking steps like having a third-party website verify an investors accreditation status.
Wyoming’s legislation gave the company confidence in their ability to meet all requirements and regulations in an environment where ambiguity equals risk.
NODE Haven intends to begin manufacturing in early 2019 and have their product ready to ship by mid-2019.