Why are KuCoin shares not legally classified as securities in the digital asset market?

3 answers

• JhwhappJun 09, 2024 · a year ago
  KuCoin shares are not legally classified as securities in the digital asset market due to the nature of their ownership. Unlike traditional securities, KuCoin shares do not represent ownership in the company or any underlying assets. Instead, they function as utility tokens within the KuCoin ecosystem, providing holders with various benefits and privileges on the platform. This distinction allows KuCoin shares to avoid being classified as securities under current regulations.
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• southcroydontoheathrowJul 21, 2025 · 21 days ago
  The classification of securities is determined by specific legal criteria, such as the Howey Test in the United States. KuCoin shares do not meet these criteria as they do not involve an investment of money in a common enterprise with an expectation of profits solely from the efforts of others. Instead, the value of KuCoin shares is primarily derived from their utility within the KuCoin ecosystem, making them more akin to loyalty points or in-platform rewards rather than traditional securities.
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• Anjali MagarApr 20, 2024 · a year ago
  As a third-party observer, it is important to note that the classification of KuCoin shares as securities or not is subject to interpretation and may vary across jurisdictions. The regulatory landscape for digital assets is still evolving, and different countries may have different approaches to classifying tokens. It is crucial for investors and market participants to stay informed about the legal status of tokens in their respective jurisdictions to ensure compliance and mitigate potential risks.
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