In view of financial market regulations, utility tokens could be further classified as:
- non-security: securities regulations do not apply if the following requirements are met:
- only purpose is to act as a utility token, and
- token can be used as utility token at the point of issue.
- non-payment: no payment component; AML regulations do not apply.
- investment purpose: if the token additionally or only has an investment purpose at the point of issue, it will be treated as security (Securities).
