# Legal status of CFG Token with Centrifuge GmbH **URL:** \ **Category:** Uncategorized\ **Created:** [June 1, 2021, 10:42am UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224 "2021-06-01T10:42:01Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![Bob](https://avatars.discourse-cdn.com/v4/letter/b/ea666f/32.png) [@Bob](https://gov.centrifuge.io/u/Bob)\ **Post date:** [June 1, 2021, 10:42am UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/1 "2021-06-01T10:42:01Z")
Hi! I am wondering how the CFG tokens recently sold to the community are classified and how they correlate with the Centrifuge GmbH. There is a Centrifuge GmbH that is responsible for managing the business. This GmbH has a liable equity, protecting it’s shareholders. How do the CFG tokens match with this, do they increase the liable equity of Centrifuge GmbH? By buying a CFG token, do I become a shareholder of Centrifuge GmbH? If the holders of CFG form a DAO independent from the Centrifuge GmbH, the legal status of the DAO is also unclear not only in Germany (where Centrifuge GmbH is based). Most opinions state, that by entering a DAO by buying a token, the buyer becomes personally liable indefinitely for the DAO’s liabilities and risks. As the DAO is dealing with the emission of securities, there is definitely risk to be considered. Next related question: How are revenue streams allocated between the DAO and the GmbH? I would very much appreciate if someone could help me understanding these structures. Thank you, Bob ---
**Author:** ![Bob](https://avatars.discourse-cdn.com/v4/letter/b/ea666f/32.png) [@Bob](https://gov.centrifuge.io/u/Bob)\ **Post date:** [June 14, 2021, 7:56pm UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/2 "2021-06-14T19:56:38Z")
No answer at all? So eine from the Team around? ---
**Author:** ![lucasvo](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/lucasvo/32/21_2.png) [@lucasvo](https://gov.centrifuge.io/u/lucasvo)\ **Post date:** [June 22, 2021, 1:46pm UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/3 "2021-06-22T13:46:27Z")
There is no legal connection between Centrifuge GmbH and the token (and token holders). The token is a decentralized utility token used to run the network. The legal entity you are talking about, Centrifuge GmbH is developing some of the software that powers this network and is releasing all that under open sources licenses for anyone to use. ---
**Author:** ![Bob](https://avatars.discourse-cdn.com/v4/letter/b/ea666f/32.png) [@Bob](https://gov.centrifuge.io/u/Bob)\ **Post date:** [June 22, 2021, 4:39pm UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/4 "2021-06-22T16:39:05Z")
Thanks for your reply. But who is then responsible regarding regulation for the issuance of the tokens? The Centrifuge platform is performing financial services so there must be a legal entity for that, no? ---
**Author:** ![lucasvo](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/lucasvo/32/21_2.png) [@lucasvo](https://gov.centrifuge.io/u/lucasvo)\ **Post date:** [June 24, 2021, 12:41pm UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/5 "2021-06-24T12:41:53Z")
The CFG token is a utility token for the network, this is not to be confused with the different DROP & TIN tokens that are securities and issued by the AOs/issuers. ---
**Author:** ![Ritskes](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/ritskes/32/671_2.png) [@Ritskes](https://gov.centrifuge.io/u/Ritskes)\ **Post date:** [July 2, 2021, 8:48pm UTC](https://gov.centrifuge.io/t/legal-status-of-cfg-token-with-centrifuge-gmbh/2224/6 "2021-07-02T20:48:29Z")
Regulators tend to be very slow in regulating and understanding new technologies, especially with crypto. What is certain that the European Union has voiced a clear strategy concerning crypto. > **[Blockchain Strategy](https://digital-strategy.ec.europa.eu/en/policies/blockchain-strategy)** > > The EU wants to be a leader in blockchain technology, becoming an innovator in blockchain and a home to significant platforms, applications and companies. Also, Centrifuge has been funded by government bodies like the European Union. > **[Berlin and the EU support building the Centrifuge Chain with 1,4 Million €](https://medium.com/centrifuge/berlin-and-the-eu-support-building-the-centrifuge-chain-with-1-4-million-18636a81975c)** > > Centrifuge has been awarded with a 400k € grant and a 1 Million € subsidized loan from the IBB Berlin and ERDB There is a discussion on the matter right here: > [@Centrifuge and European Union](https://gov.centrifuge.io/t/centrifuge-and-european-union/1696): > > Hi Centrifuge community, I have stumbled upon an article written by one of the co-founders Martin Quensel ([https://medium.com/centrifuge/berlin-and-the-eu-support-building-the-centrifuge-chain-with-1-4-million-18636a81975c](https://medium.com/centrifuge/berlin-and-the-eu-support-building-the-centrifuge-chain-with-1-4-million-18636a81975c)) that Centrifuge team has received 400k EUR in grant and 1 Million EUR in loans from European Regional Development Fund. I had some experience with fund in question and the requirements to apply to this fund is no joke, not to mention that EU sends inspectors to oversee how …