A Clear Path Forward — Listing Utility Tokens at GBX and Security Tokens at GSX
For most in the blockchain industry there is still a great deal of regulatory uncertainty.
Some regulators have much broader criteria than others for classifying tokens as financial securities. This poses a considerable challenge for a lot of projects considering their own token sale. It is not always obvious how a token will be legally classified.
This can make things incredibly difficult. You might have to completely rethink your user base if citizens from certain countries are closed to you. On a personal level you may wonder why your great idea can’t serve the global purpose you’d imagined.
The GSX Group hopes to make things a little easier.
When you know which rules you have to follow, when there’s a clear path, it’s much easier to plan and go forward. We aim to cater for both utility and security tokens.
If you have a utility token, we would like you to consider listing with us at the Gibraltar Blockchain Exchange (GBX). If you have a security token, we will offer the opportunity to list it at the Gibraltar Stock Exchange (GSX). We are aiming to offer this choice in H2 2018.
In the GBX-GSX ecosystem we make two broad distinctions between tokens:
- A utility token serves a function within the technology or workings of the issuer and does not entitle you to financial participation.
- A security token does entitle you in some way to financial participation of the issuer.
For extra reassurance, the Gibraltar Stock Exchange is itself applying for a special extension of its licence to specifically allow it to list security tokens. This is in addition to its existing permissions for more regular types of securities.
This is how the GSX Group will achieve its ambitions to be able to cater for the full spectrum of business needs. Whichever category you fit into, we will have an answer for you and a clear path forward.
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Medium blog: https://medium.com/@Gibraltar.Blockchain.Exchange