What Are The Restrictions On The BTC-Alpha Platform Regarding The Usage And Trading Security And Utility Tokens?
Different tokens have different legal status and based on it, different requirements for trading within the law. The legal status of cryptocurrencies has long been a stumbling block in many states across the globe and because of the difficulties with its definition. This was the reason that during all this time, cryptocurrencies could not get a clear wording in the letter of the law. The situation affected the entire cryptocurrency market, as uncertainty did not contribute to the integration of cryptocurrencies into the world of finance, despite the popularity and active use of digital money around the world.
The Difference Between Security And Utility Tokens
The more the turnover of finance in cryptocurrency became, the more acute the question of determining the legal status of digital money arose. Now, it is different for different tokens depending on their purpose and functionality. Thus, security and utility tokens have different purposes and functions, and in accordance with this difference they have different legal statuses in the world of finance. The former are considered securities, the latter are on a par with coupons for access to an application or service. To work with security tokens, you need a license, and failure to comply with the rules for working with such tokens entails punishment from the regulatory authorities.
What Tokens Does BTC-Alpha Work With?
Since to work with securities you need an appropriate license, and our platform does not currently have licensing for security tokens' operations, we do not work with security tokens. Regarding utility tokens, we do not have any special requirements or restrictions, since they do not have a special legal status, are neither a traded asset nor demand special permissions and documents to work with them.