• 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.


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