Regulations Of Security Tokens
Why are we issuing this Consultation Paper?
This Consultation Paper (CP) seeks public comment on our proposals for regulating Security Tokens. These proposals are designed to provide a regulatory regime for activities relating to Investments that:
a)are a digital representation of rights and obligations, created, stored and capable of being transferred electronically – using distributed ledger technology (DLT) or similar technology; and
b)confer rights and obligations which are either the same as those conferred by Investments (e.g., a share, debenture or futures contract), or are substantially similar in nature, purpose or effect as those conferred by Investments.
These Investments are collectively referred to as ‘Security Tokens’ (although the rights available to their holders can vary).