Token Sale Agreement Generator for Australia

A Token Sale Agreement sets out the legal terms when a company sells digital tokens or cryptocurrency to investors in Australia. It's similar to a share purchase agreement but specifically designed for blockchain-based assets, covering key details like token price, purchase amounts, and delivery mechanisms.

These agreements play a crucial role in Australia's digital asset landscape, where they must comply with ASIC guidelines and the Corporations Act. They protect both token issuers and buyers by clearly stating token rights, usage restrictions, and important disclosures about risks and regulatory requirements.

Use a Token Sale Agreement when launching a cryptocurrency or digital token offering in Australia, especially before accepting any investor funds. This agreement becomes essential for tech startups and blockchain companies planning to raise capital through token sales, ICOs, or similar fundraising methods.

It's particularly important when dealing with sophisticated investors under ASIC guidelines, or when your token might be classified as a financial product. Having this agreement in place helps navigate regulatory requirements, protects both parties' interests, and establishes clear terms for token distribution, vesting schedules, and investor rights.

• Simple Token Sale Agreement: Basic version for straightforward token sales to Australian investors, covering essential terms like price, quantity, and delivery.
• SAFT-Style Agreement: Structured as a future token right, commonly used for pre-sale arrangements before token development is complete.
• Security Token Agreement: Detailed version for tokens classified as financial products under Australian law, with additional compliance provisions.
• Utility Token Agreement: Focuses on tokens with functional use cases, emphasizing platform access rights and usage terms.
• Hybrid Agreement: Combines elements of security and utility token provisions, suitable for tokens with multiple characteristics.

• Token Issuers: Tech companies, blockchain startups, or established businesses creating and selling digital tokens or cryptocurrencies in Australia
• Investors: Individual and institutional buyers purchasing tokens, often including sophisticated investors under ASIC guidelines
• Legal Counsel: Corporate lawyers specializing in digital assets who draft and review Token Sale Agreements for compliance
• Compliance Officers: Internal team members ensuring the agreement meets ASIC requirements and Australian securities laws
• Platform Operators: Digital exchanges or trading platforms facilitating token distributions under the agreement terms

• Token Details: Document your token's technical specifications, utility, and distribution mechanism
• Investment Terms: Define token price, minimum purchase amounts, and payment methods accepted
• Regulatory Status: Determine if your token classifies as a financial product under Australian law
• Investor Criteria: Outline eligibility requirements and KYC/AML procedures
• Sale Structure: Specify vesting schedules, lock-up periods, and distribution timelines
• Risk Disclosures: List potential risks and regulatory considerations for investors
• Platform Generation: Use our platform to automatically generate a compliant agreement incorporating these details

• Token Description: Detailed specifications of the digital asset, including technical features and utility
• Purchase Terms: Price, payment methods, minimum investment amounts, and token allocation
• Sale Mechanics: Distribution timeline, vesting schedules, and lock-up periods
• Investor Warranties: Confirmation of eligibility under Australian securities laws
• Risk Disclosures: Comprehensive list of investment risks and regulatory considerations
• Compliance Provisions: AML/CTF obligations and ASIC regulatory requirements
• Dispute Resolution: Australian jurisdiction and applicable law clauses
• Termination Rights: Conditions for agreement cancellation and refund procedures

A Token Sale Agreement differs significantly from a Simple Agreement for Future Tokens (SAFT), though both are used in cryptocurrency fundraising. The key distinctions lie in their timing, structure, and regulatory implications under Australian law.

• Timing of Token Delivery: Token Sale Agreements handle immediate token transfers, while a Simple Agreement for Future Tokens promises future delivery once the tokens are developed
• Investment Structure: Token Sales involve direct purchase of existing tokens, whereas SAFTs represent a right to receive tokens in the future
• Regulatory Treatment: Token Sales may trigger immediate securities law obligations, while SAFTs often fall under forward contract regulations
• Risk Profile: Token Sales involve immediate asset transfer risks, while SAFTs carry additional development and delivery risks
• Legal Complexity: Token Sales typically require more comprehensive terms around immediate token utility and rights, while SAFTs focus on future development milestones and conversion terms