top of page
  • Writer's pictureDeborah

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

The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. SOFR is the overnight interest rate for US dollar-denomina

13/06/2023 - Canadian Securities Administrators (CSA) SEDAR+ go-live date. All issuer filings, cease trade orders and disciplined list entries will be filed in SEDAR+ 16/06/2023 - OSFI consultation pe

On May 11, the Bank for International Settlements (BIS) published a Handbook on how central bank digital currencies (CBDCs) could work for offline payments, defined as a “transfer of value between dev

bottom of page