For every ITO the token has to be classified and a decision pertaining to its regulatory status has to be made. Several fields of law such as financial market law, anti-money laundering regulations, civil law (with respect to the prospectus) and tax law have to be considered. Whereas some tokens merely give the investor the right to access a platform or utilize a digital ecosystem, most tokens are financial products and are thus covered by regulatory law. Depending on each jurisdiction, the sale and offer of these tokens might require a license and/or a prospectus. Furthermore, listing such a token on an exchange for the secondary market is also a regulated activity in most jurisdictions.
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