Safein token model cleared with FSA of Estonia and Bank of Lithuania
The community following crypto currencies is generally aware of the distinction between (i) security and (ii) utility tokens as well as why this distinction is important. One of the most significant factors though is the fact that security tokens usually fall under the scope of security regulations and thus cannot be distributed to the public freely (i.e. in absence of additional regulatory approvals). On the other hand, public sale of utility tokens is not usually subject to these regulations and can therefore happen freely without the fear of breaching the law or facing sanctions from authorities supervising the financial markets.
Accordingly, clearly knowing the type of tokens being issued and, subsequently, laws applicable to them, is imperative not only to the ICO companies, but also to the community purchasing the tokens. With all this in mind, Safein carefully designed the Safein token to fall under the category of utility tokens and went to great lengths to verify the token model with the authorities supervising the financial markets.
In view of the above, we are now pleased to announce that Safein token model has already been reviewed and verified by two highly respective central regulators of the EU — Finantsinspektsioon (FSA) of Estonia and Bank of Lithuania. Both of these institutions ruled that Safein tokens should not qualify as securities and thus do not fall under the scope of regulations attributed to financial markets. Accordingly, this all means that the Safein ICO is compliant with applicable regulations and can now safely proceed without any further governmental inquiries.
About Safein
Safein offers a blockchain-based, single-sign-on digital wallet. It enables the access to websites and other third-party services with a single click, eliminating the need for people to create and verify numerous accounts with many different login and password combinations. In addition, Safein returns control over personal information to its true owners — the people who are the subjects of the data. Safein discloses to websites and apps only the data elements that have been explicitly approved by a user, and by providing users with the ability to stop the sharing of data with any particular third-parties at any time. Safein’s initial target markets include the cryptocurrency and gaming sectors, within which its management team enjoys significant prior experience and successes.
