Crypto coins (crypto currencies) are determined as coins (virtual/digital) money, which come into being through their encryption and deployment in a blockchain network. Their features of medium of exchange preserve their long-term value and unit of account. Such crypto coins are BitCoin, Litecoin, ZCash and others. Unlike tokens, coins function through an own blcokchain. The FSC neither regulates nor performs any supervision on crypto coins.

Tokens could be determined as crypto assets issued by a company funding its project through ICO’s. They may be used as instrument of payment (payment unit) solely in a project ecosystem. Moreover, they provide options which are similar to those provided by coins, but their holder disposes of other rights related to the network, for instance voting right, dividend right, right of part of the income etc. Tokens are designed as “smart” contracts based on a blockchain network like Etherum or Wave. Tokens could be identified as financial instruments, commodities or services, which may be used by their owner depending on the crypto assets characteristics.

The Initial Coin Offering could be defined as initial offering performed through selling of tokens, in order to raise capital for performance of projects, or to solve respective problem through elaboration of concrete market niche or business model.

Blockchain means a decentralized structure, which facilitates storing of an entirety of replicated, shared and synchronized numeral data geographically distributed in a network by numerous computers located in various states, whereat it allots the latter in a totality of copies issued as result of handling of transactions belonging to a concentrated block. All participants in this structure have equal rights (peer to peer), shall observe common rules (protocols), and once having validated a transaction, the latter remains unchanged. It justifies the perception of the blockchain as a decentralized system, which ensures transparency, irrevocability and security of the transactions performed by it.

The Whitepaper is a document drawn up by the organization/company issuing tokens for the purpose of capital procurement aimed at financing concrete project. There is not any legally defined content or prerequisites, which a whitepaper should comply with, thus the latter is not subject to approval by the FSC. Such a document usually contains information about the process of issuance of tokens, as well as information about the project, which has to be realized and the project staff.