Published on June 11th, 2018 | by bitcoin0
Tokens Are Securities Lithuania Issues Guidelines for When Ico
Lithuania’s Ministry of Finance has issued guidelines on initial coin offerings (ICOs), outlining when cryptographic tokens would be viewed as securities and how each aspect of a token sale should be regulated by different laws in the country.
According to the document published Friday, a defining feature in the recommended framework is whether a token “grants profits or governance rights” to investors who obtain the token through an ICO.
The finance ministry further dissects an ICO into several areas, including tokens that are issued, the entity that organizes the sale, whether it participates in secondary market exchanges and whether the ICO itself is a crowdfunding activity, etc.
It goes on to say that these aspects should be regulated by corresponding laws already in place in Lithuania, such as those governing securities, crowdfunding and financial instruments markets.
For instance, the guidelines suggest, investors’ “income received from individual purchases and sales of virtual currencies will be taxed standard 15% fixed income tax rate.”