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CRA-15.1.3

While determining whether a digital token qualifies as a security, the CBB will examine the underlying economic purpose of the digital token, its structure and characteristics, including the rights attached to the digital token. For the avoidance of doubt, a digital token may be considered:

(a) Equivalent of an equity security: where it confers or represents ownership interest in the issuer or gives entitlement to share in the issuer's profit; or
(b) Equivalent of a bond or debt security: where it constitutes or evidences the indebtedness of the issuer of the digital token in respect of any money that is lent to the issuer by the digital token holder, its maturity is fixed, is redeemable at maturity and gives entitlement to share in interest distributed by the digital token issuer.
Added: April 2023