UK Regulator: Utility Tokens Are Not Subject To Securities Laws (news.bitcoin.com)
The UK’s FCA (Financial Conduct Authority) this week clarified that cryptocurrencies and utility tokens are not securities.
The current FCA position on this subject, as expressed in the document, is that unlike security tokens, cryptocurrencies and utility tokens do not constitute regulated securities.
The regulator defines security tokens as those that have similar characteristics to traditional instruments like shares, debentures or units in a collective investment scheme.
The FCA clarifies: “Security tokens are the type of crypto asset which falls within the regulatory perimeter.”
In contrast, utility tokens are defined as those that provide consumers with access to a current or prospective service or product and often grant rights similar to pre-payment vouchers.
“As utility tokens do not typically exhibit features that would make them the same as securities, they won’t be captured in the regulatory regime, unless they meet the definition of e-money,” the document clarifies.
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Related article: US SEC Seeking Big Data Tool For Major Blockchains (coindesk.com)
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