Document background
The Token Subscription Agreement is a vital legal document used in the Canadian digital asset landscape when an entity wishes to issue digital tokens to subscribers. This agreement is particularly relevant in the context of initial token offerings, security token offerings, or utility token sales. It must comply with Canadian securities laws, anti-money laundering regulations, and digital asset requirements at both federal and provincial levels. The document typically includes detailed sections on token characteristics, purchase terms, compliance obligations, and risk factors. It's essential for protecting both issuer and subscriber interests while ensuring regulatory compliance. The agreement should be customized based on the token type (security, utility, or hybrid), the offering structure, and specific provincial requirements where the offering takes place.
