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Utility Token

In view of financial market regulations, utility tokens could be further classified as:

  • non-security: securities regulations do not apply if both:
  1. only purpose is to act as a utility token, and
  2. 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).
Utility Token-image
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