Sapphire Swap
  • Sapphire Swap Overview
    • Introduction
    • Mission and Vision
    • The Challenge
    • Our Solution
  • Key Features
    • Ecosystem Highlights
      • Gembidder
      • Gemstake
      • Sapphire Fund
      • Sapphire & CO
      • Sapphire Agent
      • SapphireX
  • Strategic Insight
    • Market Opportunity
      • Global Gemstone & Jewelry Market Overview
      • Blockchain Adoption and Growth Trends
      • Competitive Positioning in the Market
    • Business Model
      • Revenue Stream
      • Profit allocation
      • Operational framework
    • Customer profile
      • Target Audience breakdown
      • Unique Value Proposition for Buyers, Investors, and Stakeholders
    • Value Preposition
  • Financials
    • Traction
      • Progress and Early Achievements
      • Partnerships and Milestones Achieved
    • Financial Forecast
      • Projected Revenue and Profitability
      • ROI Expectations for Investors
      • Break-Even and Growth Timeline
    • Tokenomics
  • Utility
    • Deflationary Mechanisms and Staking
  • Roadmap
    • Roadmap
  • Additional
    • Technology & Security
      • Blockchain Infrastructure
      • AI Agent and Ecosystem Automation
      • Smart Contract Audits and Security Protocols
    • Freelance Sale Model
      • Empowering Community Members
      • Commission-Based Earnings and Incentives
    • Competitive Advantage
      • How Sapphire Swap Stands Out
      • Competitor Analysis and Differentiation
    • Go-To-Market Strategy
      • Global Launch Plan
      • Marketing and Community Engagement
      • Partnerships with Influencers and Key Players
    • Technical Diagrams and Market Data
  • FAQs And Legal
    • FAQs
    • Legal and compliance
      • Adherence to Local and Global Regulations
      • Token Classification and Legal Framework
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On this page
  • 1. Utility Token Designation
  • 2. Compliance with Global Standards
  • 3. Legal Counsel and Advisory
  • 4. Cross-Border Compliance
  • 5. Security and Accountability
  1. FAQs And Legal
  2. Legal and compliance

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.

3. Legal Counsel and Advisory

  • 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

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

PreviousAdherence to Local and Global Regulations