Token Classification and Legal Framework

1. Utility Token Designation

  • Non-Security Classification:

    • SFT tokens are structured as utility tokens, ensuring they are not classified as securities under most jurisdictions.

    • Provides access to Sapphire Swap’s ecosystem features, including staking, governance, and exclusive product offerings.

2. Compliance with Global Standards

  • AML and KYC Protocols:

    • Implements stringent Anti-Money Laundering and Know Your Customer processes to prevent illicit activities.

  • GDPR and Data Privacy:

    • Ensures user data protection aligns with the General Data Protection Regulation (GDPR) and similar international laws.

  • Regulatory Guidance:

    • Partners with experienced legal firms specializing in blockchain and cryptocurrency compliance.

    • Regularly reviews evolving regulations to ensure continued adherence.

  • Tokenomics Audit:

    • Conducts thorough audits of tokenomics to align with legal requirements and investor expectations.

4. Cross-Border Compliance

  • Jurisdictional Approvals:

    • Secures approvals and licenses in key markets, including the USA, EU, and Asia-Pacific regions.

  • Taxation Compliance:

    • Provides transparent reporting mechanisms for token holders to comply with local tax laws.

5. Security and Accountability

  • Transparent Operations:

    • All token-related transactions are recorded on the blockchain for immutable and transparent tracking.

  • Smart Contract Oversight:

    • Regular audits ensure that smart contracts are secure, efficient, and compliant with legal

circle-info

Sapphire Swap’s proactive approach to legal and regulatory frameworks ensures a secure and trustworthy platform for users, stakeholders, and investors alike.