# kaal:claim:3117224-028

**Claim.** Under German law the decisive factor in classifying a token is which rights are associated with it; labels such as participation token, utility token, or payment token give only initial guidance and cannot be relied upon outside a comprehensive and binding regulatory classification.

**Type.** definitional  **Support.** evidenced

**Holds when.**

- Germany
- BaFin securities supervision

**Source quote.**

> A prior classification of the token (i.e. as a "participation token", "utility token", or "payment token") can provide initial guidance as to the type of token it is under German law, but is not to be relied upon outside a comprehensive and binding regulatory classification.

**From.** Wulf A. Kaal, *Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses* (2018), IV. Regulatory Responses, page 17

**Cite as.** Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224

**Verify.** sha256 of source PDF `83e9ccb9219a217d9fcfc5c098b897229ee7cf85623bee3ae22d2e986548466b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202018%20-%20Initial%20Coin%20Offerings%20The%20Top%2025%20Jurisdictions%20and%20Their%20Comparative%20Regulatory%20Responses.pdf

**Topics.** systemic-risk, tokenomics, securities-law

**Keywords.** germany, bafin, token-classification, securities-law

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/4021599-021
- extended_by: https://wulfkaal.github.io/claims/4021599-023
- extended_by: https://wulfkaal.github.io/claims/4021599-008

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