Tokens that are not qualified as securities and do not trigger prospectus obligations:
Payment token
- Not considered as securities, given that payment tokens are designed to act as a means of payment, unlike traditional securities.
Utility token
- Not securities if (both) prerequisites are met:
- Sole purpose is to act as a utility token i.e. provide digital access to an application or service; and
- Token can already be used as a utility token at the point of issue.
