The Bank of Lithuania became the first market regulator to issue security tokens (STO) guidelines.
The new guide focuses on the classification of security tokens, the evaluation of specific cases and the provision of recommendations regarding their issue. It also clarifies the legal regulations applicable to STO sales. Companies that intend to use the STO method will have to comply with EU and national legislation governing capital raising activities.
The Bank of Lithuania will adopt a technology-neutral regulatory approach. If a particular product has characteristics of a financial instrument, it will be subject to the relevant regulations and supervision, regardless of the technology used in its creation. Also, the bank will consider each case separately, taking into account the function of the token, not its form.
The popularity of STOs is still low in the crypto market, but analysts believe they have more confidence than ICOs.
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