Avoiding the Misclassification Trap in Crypto Startups
In the world of crypto, getting the classification of your token right is super important. With regulatory scrutiny on the rise, it’s essential for startups to steer clear of the misclassification trap. This post dives into some real-world examples of when things went wrong, especially for fintech startups, and lays out some best practices to keep your crypto project compliant and thriving.
The Big Difference: Utility Tokens vs. Securities
Utility tokens are supposed to give you access to a product or service within a certain ecosystem. In contrast, securities represent an investment in a company or project with the hope of profit. Regulators focus on the substance of the token, rather than just the label. If your token has…
