Date of Memorandum: July 25, 2025
This document provides formal confirmation regarding the regulatory classification of the digital asset ETHICOIN (Ticker: ETHIC+), a BEP-20 token on the BNB Chain. It is intended to clarify the position of the project for internal compliance and for external partners, including regulated exchanges and institutional platforms.
Based on a comprehensive internal review of the token's architecture, inherent utility, and distribution framework, it is our considered position that ETHICOIN does not, to the best of our knowledge, constitute a "security" under the current legal definitions and regulatory frameworks of any major jurisdiction. This assessment is made in the absence of any contradictory, jurisdiction-specific ruling.
Our conclusion is based on the fact that ETHICOIN lacks the fundamental characteristics typically associated with regulated financial instruments or securities. The token's design is intentionally structured to fall outside the scope of assessments like the Howey Test.
Asset-Backed Utility: Ethicoin is a commodity-referenced digital asset, backed by physically allocated and auditable gold reserves. Its primary purpose is to provide a verifiable, on-chain representation of a tangible asset.
No Expectation of Profit from Managerial Efforts: The token does not grant holders rights to dividends, profit-sharing, or equity. Its value is correlated to its underlying asset and market dynamics, not derived from the managerial or entrepreneurial efforts of a third party in a common enterprise.
Lack of Investment Contract Features: ETHICOIN confers no governance rights, voting privileges, or entitlement to debt or equity in the issuing entity. It is not marketed or structured as a speculative investment product but as a utility token for access and transparent asset representation.
Ethicoin is positioned as a transparent, ethics-driven, and commodity-backed digital asset. Given its structure and utility, it does not align with the definition of a security. This memorandum is issued to facilitate compliance screening and listing reviews.
This memorandum is for informational purposes only and does not constitute legal or financial advice. The regulatory landscape for digital assets is subject to change and varies by jurisdiction. This statement reflects our assessment based on facts and regulations as of the date of this document. It is not a guarantee of regulatory status in perpetuity. All parties should conduct their own independent legal and regulatory due diligence.