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Title: [2018-03-19]Israeli Regulator: Utility Tokens Shouldn't Be Deemed Securities Post by: TravelMug on March 19, 2018, 10:22:20 PM Israeli Regulator: Utility Tokens Shouldn't Be Deemed Securities
The Israel Securities Authority is recommending lenient regulations for initial coin offerings, including a clear definition of what separates a so-called "utility token" from a security. In a report released last week, the regulator even proposed a temporary sandbox, where regulators would allow entrepreneurs to experiment under supervision as the cryptocurrency market evolves. According to the ISA report, a utility token that "confers usage rights in a product or service offered by a specific venture" shouldn't necessarily be deemed a security. Neither should tokens that are used solely for clearing, exchange or payments for a specific project, the report said. Many blockchain advocates welcomed the Israeli regulator's stance. Amitay Molko, co-founder of the Jerusalem-based networking group Blockchain JLM, told CoinDesk: https://www.coindesk.com/israel-regulators-utility-tokens-not-securities/ |