Payment tokens are synonymous with cryptocurrencies. Payment tokens may in some cases develop the necessary functionality and become accepted as a means of payment over time. An example would be cryptocurrencies in the strict sense of the term such as Bitcoin.
- triggers AML requirements (AML)
- hybrid payment token with an asset component triggers securities regulations (Token Classification)
- non-hybrid i.e. pure payment, with no asset component: does not trigger securities regulations given that designed to act as a means of payment