The guidance identified crypto assets into 3 categories:
- Exchange tokens: These are not issued or backed by any central authority and are intended and designed to be used as a means of exchange. They tend to be a decentralized tool for buying and selling goods and services without traditional intermediaries. These tokens are usually outside the perimeter.
- Utility tokens: These tokens grant holders access to a current or prospective product or service but do not grant holders rights that are the same as those granted by specified investments. Although utility tokens are not specified investments, they might meet the definition of e-money in some circumstances (as could other tokens). In this case, activities involving them may be regulated.
- Security tokens: These are tokens with specific characteristics that mean they provide rights and obligations akin to specified investments, like a share or a debt instrument (described in more detail in Chapter 3) as set out in the Regulated Activities Order (RAO). These tokens are within the perimeter