For the first time in Europe, a company has been able to make its conversion to another type using blockchain. This was Sandbox S.r.l, which became Fleap S.p.A thanks to the IBM Hyperledger blockchain.
Summary
Sandbox S.r.l becomes Fleap S.p.A using IBM Hyperledger blockchain: the first case in Europe
From Limited Liability Company to Public Limited Company through the use of blockchain. This is the case of Sandbox S.r.l, which has now become Fleap S.p.A, using IBM‘s Hyperledger blockchain to be able to carry out the conversion, making it the first case in Europe.Â
Specifically, the conversion took place in Italy, which, thanks to the “Fintech” Decree approved by the government in March and converted into law on 10 May, was able to consent to the change of companies.
The new Italian law is based on European Commission Regulation 858/2022 and allows companies to issue and place corporate financial instruments such as stocks, bonds and debt securities using blockchain technology.
At the moment, the only step Italy is missing is only the publication of the regulation by Consob.
This regulatory basis could grant the Sandbox company to become a S.p.A, through the use of IBM’s Hyperledger blockchain.
Not only that, also involved in the process were Thomas Iacchetti, CEO of Fleap, Notary Remo Maria Morone of Turin, and Attorney Alessandro Negri della Torre.
Regarding the decision to transform the company into Fleap S.p.A, the Digital Company application was also used, which allowed voting in real time.
Sandbox S.r.l: first case in Europe of a company transformation using IBM’s Hyperledger blockchain
Sandbox S.r.l defines itself as Europe’s first platform for issuing digital assets of a financial nature and native digitization of corporate processes based on distributed ledger technology.
Hence, she was the first entity to carry out the transformation of companies using blockchain technology.
In this regard, Notary Remo Maria Morone, said:
“I strongly believe that the future is in the direction mapped out, welcomed now also (and finally!) by the legislature. In concrete terms, the application of substantive law does not change depending on the medium: blockchain is thus an added transparency and security, and allows automations that were unthinkable until yesterday. This means that notaries can and indeed must play the very important role of guaranteeing impartiality and specialized advice in adapting corporate clauses to each individual organization and transaction.”
Alessandro Negri della Torre, founder of LX20 Law Firm, also made his comments:
“The resolution approved by Fleap’s shareholders’ meeting is characterized by profiles of great innovativeness. First, the vote and quorum data were recorded on distributed ledger technologies and, therefore, enjoy the characteristics of immutability and transparency of the underlying DLT and this is for the greater protection of all parties involved in the transaction itself. In addition, the decision was made through the Digital Company architecture, which enables the digitization of a plurality of corporate processes and is now a state-of-the-art tool for the administration of Italian companies.”Â
Crypto regulation in Italy
The year 2023 constitutes both the first year in which the new Italian law regarding crypto taxation will come into effect and the year in which the final text of MiCa, at the European level, was approved.
After the discussion in Palazzo Montecitorio on crypto regulation at the end of May, the idea emerged of endowing Italy with a specific register of providers specializing in the tokenization of corporate financial instruments, such as stocks, bonds and debt securities.Â
This is specifically about empowering companies to tokenize their corporate financial instruments into digital assets. Whether the company is financial or from any other sector.
At the same time, through the official registry, investors would be given protection on the purchase of “regulated” tokens.
For this goal, it can be said that Italy and Europe are opening the doors to the crypto sector, allowing big players in European finance to enter the sector en masse, while remaining protected.
