**The state of Montana has just released a bill that will exclude cryptocurrencies from the securities law and will describe the use of utility tokens in a in a clear and straightforward manner.** The Governor of Montana, Steve Bullock signed House Bill 584 which proposes the new provisions, as a result, making the State of Montana a desirable location for crypto startups. The bill with th...

... payments only which limits fraud capability. Asset tokens can be used after ICO as analogues of equities, bonds or derivatives. This means they are more complicated and create more stable connection between the startup and an investor. Finally, the utility tokens ensure providing a service or an access to the product for its purchaser. Considering this, FINMA, classifies both, utility and acce...

...backing of Overstock’s Patrick Byrne, ShapeShift’s Erik Voorhees, and Ethereum co-founder Anthony Di Iorio, among other industry heavyweights. Oh, and they’re launching the ST20 Security Token Standard. Yes, just like the ERC20 standard for utility tokens. Polymath plans on the same model for security tokens, creating the new standard moving forward–no wonder he’s so pumped. **What...

...d investments.” Furthermore, security tokens behave like shares or debt instruments and have ownership rights. Practically everyone who was surveyed agreed with the regulator’s opinion on security tokens in relation to the regulatory aspect. utility tokens, on the other hand, do not provide the same kinds of rights as regulated financial instruments and will generally fall outside the scop...

...egulators believe that it is important to align these activities to current securities regulations in the country. The policy mentions STOs and ICOs as two main crowdfunding techniques that should fall under securities regulations. Even payment and utility tokens would also have to submit their white papers to the regulators. Also, one of the issues raised in IFWG’s policy is about clarifica...

...r in securities license. As for the ICO itself, FINMA regulates this activity, dividing produced tokens into three categories: payment tokens: a synonym for cryptocurrency (as a rule, fall under the license of a financial intermediary); utility tokens: a token designed, for example, to provide digital access to an application or service (as a rule, is not subject to licensing, but in ...

...et service vendors. The term “digital asset” is widely defined and covers anything which exists in binary form and comes with the right to use it and includes a digital representation of value. It captures digital coins, security, equity or utility tokens and anything intended to provide access to an application, product or service by means of distributed ledger technology. There are t...