A Respected Singaporean Law Firm, Jacque Law LLC, Validates XRPH as Non-Security Token
Jacque Law LLC, a prominent Singapore-qualified law firm, has undertaken a meticulous examination of XRPH, arriving at the unequivocal conclusion that this token does not fall within the classification of a security. This authoritative legal opinion stems from an exhaustive review, considering the intricate fabric of laws and regulations governing securities within Singapore.
The accomplished legal team at Jacque Law LLC diligently scrutinized XRPH’s characteristics and attributes, ultimately affirming that it does not satisfy the criteria for categorization as a security under Singaporean law. Recognizing the profound legal and financial ramifications associated with such classifications, the firm embarked on a thorough evaluation, aiming to deliver a well-founded and legally sound conclusion.
Jacque Law LLC prides itself on its commitment to excellence and the rigorous analysis that underpins its legal judgments. Their objective is to furnish clients with precise, dependable, and pragmatic guidance across a spectrum of legal domains, including securities law. In upholding their determination that XRPH does not bear the status of a security, Jacque Law LLC affirms its confidence that their legal assessment will offer clarity and direction to those navigating the intricate regulatory terrain, not only in Singapore but also in broader contexts.
Overview of Jacque Law LLC’s Engagement:
Background:
Jacque Law LLC has been retained by XRP Healthcare Limited to provide expert counsel on the potential implications of the Company’s proposed token issuance project concerning XRPH under the Securities and Futures Act 2001 of Singapore (SFA), the Payment Services Act 2019 (PS Act), and the concept of “e-money” under the PS Act.
The Company’s objective is to introduce a novel digital asset, XRPH, designed for use on the platform developed and managed by the Company and/or its affiliates.
For this legal opinion, Jacque Law LLC reviewed the draft token documentation, a non-binding document outlining XRPH’s proposed design and issuance.
Key Features of XRPH, as Outlined in the Draft Token Documentation:
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XRPH serves as a utility token intended solely for use within the Company’s platform.
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XRPH is not intended for speculative trading and will not be traded on secondary markets.
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A substantial portion of XRPH tokens will be retained by the Company for operational purposes and potential future issuances or funding rounds.
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XRPH tokens will be made available to the public through an initial coin offering (ICO).
Crucial Determination: Digital Payment Token Classification under the PS Act
The pivotal question in determining XRPH’s classification as a “digital payment token” hinges on whether it functions as a “medium of exchange accepted by the public, or a section of the public, as payment for goods or services or for the discharge of a debt.” This assessment considers factors such as user base size and the nature of services offered. While XRPH is not intended for use as a general medium of exchange beyond the scope of XRP Healthcare, it remains freely tradeable on various virtual currency exchanges and may be exchanged peer-to-peer. Additionally, XRPH can be utilized by holders for transactions unrelated to the issuer, making it potentially qualify as a “digital payment token” under the PS Act, should the Monetary Authority of Singapore (MAS) acknowledge it as such.
Capital Markets Product Classification under the SFA
In the view of Jacque Law LLC, XRPH does not meet the criteria for classification as a “capital markets product” pursuant to the SFA. This determination arises from XRPH’s intended utility solely within the Company’s platform, its non-tradability on secondary markets, and its direct linkage of value to its intended usage. Therefore, XRPH is deemed to fall outside the definition of a “capital markets product” under the SFA.
Jacque Law LLC’s comprehensive legal analysis serves as a testament to their commitment to delivering precise, expert guidance. They provide invaluable clarity for XRPH within the complex regulatory landscape, solidifying their reputation as a leading legal authority in Singapore and beyond.
Digital Payment Token Classification under the PS Act:
As per the Payment Services Act (PS Act), a “digital payment token” is explicitly defined as a digital representation of value that operates as a unit of account, remains unpegged to any specific currency, and is primarily intended for use as a medium of exchange.
Considering the delineation of XRPH’s design, as delineated in the draft token documentation, we assert that XRPH does not fall within the categorization of a “digital payment token” under the PS Act. While XRPH does indeed serve as a medium of exchange within the confines of the Company’s platform, it notably lacks any peg to a particular currency. Moreover, its intrinsic value is intrinsically tied to its designated purpose within the platform, rather than functioning as a standalone unit of account.
E-Money Classification under the PS Act:
The PS Act’s definition of “e-money” characterizes it as electronically stored monetary value, issued upon the receipt of funds, facilitating payment transactions, and being accepted by parties other than the issuer.
By comparing these definitions, a crucial distinction emerges between a digital payment token and e-money. Specifically, if the monetary value of electronically stored assets cannot be determined without recourse to market mechanisms, such as trading the stored value on an exchange, it does not fall under the classification of e-money. Instead, it may potentially align more closely with the definition of a digital payment token.
In Summary:
In light of the provided information, XRP Healthcare emerges as a decentralized platform at the intersection of pharmaceutical and healthcare services, ingeniously constructed atop the XRP blockchain. Its overarching objective revolves around enhancing healthcare accessibility for the residents of emerging markets.
The platform’s multifaceted offerings encompass a decentralized marketplace for pharmaceutical and healthcare services, coupled with global payment and transaction capabilities accessible via mobile and web applications. Furthermore, the platform boasts a visionary “Metaverse Clinic” where individuals can partake in confidential counseling and therapy sessions, facilitated by the choice of customizable avatars.
Within this framework, the XRPH token serves a pivotal role as the designated medium of exchange for a wide array of products and services within the XRP Healthcare ecosystem. It also functions as an incentive mechanism, galvanizing user engagement and contributions. XRPH exhibits distinctive features, including its role as the native platform currency, facilitating transactions within the decentralized marketplace and covering fees. These accrued fees are subsequently redistributed as incentives to active contributors. Moreover, XRPH holders are vested with the power to propose and vote on governance initiatives, effectively shaping the future evolution of XRP Healthcare.
It is essential to underscore that XRPH has no intention of serving as a representation of money, a payment instrument, a security, a commodity, a bond, a debt instrument, or any form of financial instrument or investment. It holds a non-refundable status and is non-negotiable for cash or any other payment obligation, whether from the Company or its affiliates. The conversion of XRPH to fiat currency will transpire exclusively on third-party digital asset exchanges, with no plans for buy-back or destruction mechanisms.
XRP Healthcare’s vision unfolds as a platform tailored to healthcare products and services, leveraging blockchain technology to ensure secure and efficient transactions. The ecosystem revolves around community participation and governance, wherein incentives and rewards, in the form of XRPH tokens, drive user engagement. These tokens further empower the community through governance proposals and voting rights, though it’s imperative to note that such voting privileges are confined to governance-related matters and do not extend to the management or operational facets of the company or its assets. Holding XRPH tokens does not confer equity interest, joint venture status, or partnership within the Company.
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