Bank of Lithuania, Supervisor of financial market participants, confirms BitDegree token and model of operation is fully within legal frameworks

Bank of Lithuania, Supervisor of financial market participants, confirms BitDegree token and model of operation is fully within legal frameworks

The article below summarizes the following important legal information regarding BitDegree token and model of operation:

BitDegree is unique in its approach to its upcoming token sale because it is one of the few token sales to receive official legal approval from the national bank of its country of operation (Lithuania, EU), which is under control of the European Central Bank, to hold a token sale event.

BitDegree has taken this approach to provide token holders with full transparency, and full legality.

BitDegree tokens (BDG) are a utility token; they can be used to purchase BitDegree services, goods from BitDegree partners, reward students for their progress on their BitDegree course of study, and to pay for and subsidize scholarships.

BDG are neither a security nor equity share.

Only ether (ETH) will be accepted as a form of payment on the BitDegree platform; BitDegree will not offer buyers the possibility to purchase BDG with FIAT currencies.

Following a series of meetings with the Bank of Lithuania (Lietuvos Bankas), the supervisor of financial market participants, in the fourth quarter of 2017, the bank recently acknowledged that BitDegree is operating fully within the frameworks of the Lithuanian and Eurozone legal system. Lithuania is the European Union member state in which BitDegree is legally based.

The Bank of Lithuania also confirmed BitDegree’s token model and distribution method ahead of its token sale, which begins on December 1st, 2017.

The BitDegree platform works on the BitDegree token (BDG), which is a utility token. This means that token holders will be able to purchase BitDegree services, purchase goods from BitDegree partners, reward students for their progress on their BitDegree course of study, plus use BDG to pay for and subsidise scholarships.

BitDegree would like to stress that BDG are neither a security nor equity share.

BitDegree is aware of a certain level of malpractice surrounding Initial Coin Offerings (ICOs) by platforms using cryptocurrencies as their economic foundation. However, BitDegree seeks to differentiate itself from other platforms by offering maximum transparency and security for BDG token buyers and holders. It has sought legal clarification from the Bank of Lithuania, the supervisor of financial market participants, to ensure that its token sale will operate within the legal limits.

BitDegree CEO Andrius Putna further underlined BitDegree’s commitment to transparency and full legality by commenting: “When holding a token sale, transparency and working within the full frameworks of the law is an absolute must. This is because you are not only accountable to the token buyers and holders, but in any case of legal discrepancy, you are also accountable to the state in which you operate. This is why BitDegree takes legal matters very seriously.”

Due to its EU membership, the Bank of Lithuania is under supervision of the European Central Bank.

BitDegree will not offer the possibility for buyers to pay for BDG using FIAT currencies.

Link to the document.

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