top of page
  • Deborah

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.


Recent Posts

See All

Information, Communication Technology (ICT) systems, generally includes all hardware, software, applications and systems that combined enable people and organizations to communicate digitally. ICT enc

25 January 2023 - Comments requested on Financial Conduct Authority (FCA) proposed Sustainability Disclosure Requirements (SDR) and investment labels. 6 February 2023 - Comment period closes for the u

Last November, 2022 the Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) published their Level 3 assessment of cyber resilience on 37 Finan

bottom of page