You can see the rules and regulations in other jurisdictions.
Tokens can also come in the form of payment tokens, which function similarly to Bitcoin and Ether, but are issued by entities or individuals.1
At present, some market participants are attempting to create stablecoins that resemble a fiat currency such as the euro. These coins could be used to buy and sell goods and services, if the buyer and seller both consented to accept these coins - potentially even trading them for other cryptoassets or fiat currency. Depending on its specific characteristics, such payment tokens may need to be categorised as e-money, which means obtaining a licence from an e-money institute could be necessary. It is also possible that one of the Banking Act or Payment Services Act licences would have to be acquired; for example, if issuing payment instruments or providing payment services is involved. However, certain exemptions from licensing requirements exist; they should be considered on a case-by-case basis.1
Tokens often referred to as security tokens may qualify as financial instruments or transferable securities depending on how tradeable they are, similar to securities. This public offering of such tokens might involve complying with prospectus requirements for potential benefit from passporting rules that would not be available for ICOs or ITOs. Nevertheless, this qualification could have a negative effect on certain fintech companies' business models. For instance in Austria, trading in security tokens might require a banking licence; MiFID II regulations might declare advising customers on investments in security tokens as investment advice; and the Austrian Securities Supervision Act 2018 potentially regards accepting and transmitting orders for security tokens as an act that must be regulated.1
AFA exemptions and easements should also apply to security tokens and ICOs/ITOs.1
Utility tokens are commonly structured in a similar fashion to vouchers and, as recognised by the FMA, afford holders the right to access goods or services from either the token issuer or a limited selection of service partners. Should the network of token acceptance expand beyond this threshold, an official licence must be acquired under the Payment Services Act which is compliant with PSD II regulations.1
Customers can conduct peer-to-peer transactions using decentralised exchanges without having to deal with an operator or central counterparty. The decentralised exchange may require a license under the Austrian Banking Act or Securities Supervision Act 2018 if it facilitates the trading of securities and security tokens.1
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