Utility tokens have ‘ one or more specific functions, such as allowing its holder to access or purchase services or assets based on blockchain technology’.

This definition was provided in CSA Staff Notice 46-308 Securities Law Implications for Offerings of Tokens.

Despite the fact that the tokens have one or more utility functions, if an offering of a coin or token involves:

• An investment of money

• In a common enterprise

• With the expectation of profit

• To come significantly from the efforts of others

The offering would likely involve an investment contract and will be considered a security under Canadian securities laws.