Regulated tokens are tokens traded under designated conditions. For instance, only certain whitelisted addresses are permitted to trade. This means tokens cannot be sent to a non-whitelisted address, or bought by one on DEX, until the address owner has conducted the preliminary accreditation process.
The most popular use case for regulated tokens is Security Token Offerings. Security tokens are backed by real assets such as stocks, and the holders are entitled to dividends and other shareholder privileges.
The issuance and sale of Security tokens involve compliance with securities regulations in the relevant jurisdiction. This, in turn, forces the token issuer to compile a whitelist of accredited individuals who are allowed to buy that asset.
The provided tool simplifies the technical side of the token issuance process on the Waves Platform. As a result, any user can allow circulation of their token only to addresses from a manageable whitelist.