What are the reasons why KuCoin shares are not considered securities in the cryptocurrency industry?

3 answers

• Dideriksen RamosAug 14, 2021 · 4 years ago
  KuCoin shares are not considered securities in the cryptocurrency industry because they do not meet the criteria set by regulatory bodies. Securities are typically defined as financial instruments that represent ownership or debt in a company, and are subject to regulations to protect investors. KuCoin shares, on the other hand, are utility tokens that provide access to certain features and benefits within the KuCoin ecosystem. They do not represent ownership in the company and are not backed by any underlying assets. Therefore, they are not classified as securities.
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• Tarek ElbanFeb 14, 2023 · 2 years ago
  The classification of tokens as securities is determined by various factors, including their economic substance and the expectations of investors. In the case of KuCoin shares, they are designed primarily as utility tokens to facilitate transactions and provide access to services within the KuCoin platform. They do not promise any financial returns or dividends to token holders, which is a key characteristic of securities. As a result, regulatory authorities do not consider KuCoin shares as securities.
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• PlasmoAug 27, 2024 · a year ago
  As a third-party, I can provide an objective perspective on this matter. KuCoin shares are not considered securities in the cryptocurrency industry due to their utility nature. They are primarily used within the KuCoin platform for discounted trading fees, voting rights, and other benefits. Unlike securities, KuCoin shares do not represent ownership in the company or entitle holders to share in its profits. Therefore, they fall outside the scope of securities regulations and are classified as utility tokens instead.
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