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⚠️Legal Notices

0. Initial Notices

This section aims to provide information about the legal and regulatory landscape related to the KNN token. The information contained in this article is based on reliable and up-to-date sources, but it is important to note that laws and regulations may be subject to change and variation.The contents of this document do not constitute any form of legal advice and we accept no responsibility for any action taken in reliance on the information contained herein.Navigation

  1. 1.KNN UtilityToken

  2. two.Kanna and Cannabis

  3. 3.Marketing of the Token

  4. 4.General Considerations

  5. 5.References

Kanna clarifies that it does not sell cannabis or any products derived from it. The purpose of this document is to provide information on the regulatory landscape for hemp, with a unique focus on its legal and regulatory nature. No part of this material should be construed as an offer to buy, sell or invest in cannabis or plant-derived products.The KNN token issued by Kanna is a utility token, designed to provide access to an ecosystem of cannabis-related benefits such as services, information, products and business opportunities. It is important to highlight that the KNN token is not intended to be considered as a security, investment or financial instrument. Its purpose is strictly functional within the Kanna ecosystem, granting holders rights to use and participate in the services offered.KNN token holders have no guarantee of profit or financial return. Those interested in purchasing the KNN token are advised to carefully review its terms and conditions and consult appropriate professional guidance before making any purchasing decision.Tokens are not being offered or distributed to any resident or any person located or domiciled where such offering is prohibited, restricted or unauthorized in any way or manner, whether in whole or in part pursuant to the laws, regulatory requirements or rules of such jurisdictions.

1. KNN Token as Utility Token

I. Introduction

This chapter aims to analyze the nature of the KNN token, issued by the company Kanna, in order to characterize it as a utility token, not fitting, therefore, as a securities asset. To support this thesis, legal, regulatory and technical aspects will be considered, as well as the consultation of the Securities and Exchange Commission (CVM) standard, in particular Guidance Opinion 40 - Cryptoassets and the Securities Market.A Kanna é uma empresa que tem como objetivo principal fomentar o engajamento e utilização da sua plataforma através do seu token de utilidade o KNN e quer auditar e certificar o impacto de cultivos regenerativos. Possibilitando com que as pessoas apoiem o impacto ambiental e social positivo, utilizando a transparência da blockchain e a tecnologia ambiental do cânhamo.O token emitido pela Kanna, é um ativo digital que possui diversas utilidades no contexto da plataforma desenvolvida pela empresa. O objetivo central é ser uma ferramenta para viabilizar a participação dos usuários no ecossistema proposto pela Kanna.

II. Characteristics of the KNN Token as a Utility Token

To gain a deeper understanding of the nature of the KNN token, it is essential to analyze the detailed information available in the document provided by Kanna: https://kanna.gitbook.io/paper/caracteristicas/utilidades-do-token.

This document provides a comprehensive overview of its functionalities and utilities, elucidating its main purpose as an instrument for accessing the Kanna ecosystem. Token holders can enjoy various benefits such as rewards in NFTs and KNN tokens, access to closed discussion groups, redemption of discount vouchers within the partner network, among others.

III. Analysis of CVM Regulation - Guiding Opinion 40

For a more in-depth analysis of the classification of the KNN token, it is relevant to consider the CVM regulation, specifically Guiding Opinion 40 - Cryptoassets and the Securities Market. This regulation establishes criteria for determining when a token can be considered a securities asset. It is necessary, therefore, to examine how the KNN token fits in relation to these criteria.

According to the CVM, a securities asset is one that has securities value by its nature and represents rights, including participation in a wealth-generating business. When analyzing the KNN token in light of these criteria, it can be concluded that it does not fit as a securities asset.

Regarding the first criterion, securities value by its nature, it is observed that the value of the KNN token is directly linked to its utility within the Kanna platform. The token is not considered a financial investment in itself, as its primary function is not to generate profit for the holders but rather to provide access to services and functionalities within the ecosystem.

Regarding the second criterion, the representation of rights, it is important to highlight that the KNN token does not confer participation rights in the business of the Kanna company to holders. Although the token allows active involvement in platform governance, this participation is achieved through voting mechanisms and influence on decisions, not through obtaining an equity stake or right to profit distribution.

Among the various utilities of the KNN token, notable features include the ability to acquire products or services within the platform, access to premium content, participation in reward programs, governance, and influence in community decisions, among other benefits. These functionalities highlight the nature of the token as a utility tool, whose value is directly linked to its practical application and role in the proposed Kanna ecosystem.

The possibility of trading the KNN token on exchanges does not affect its classification as a utility token. Trading on exchanges is a way to facilitate liquidity and access for token holders, allowing them to buy and sell KNN according to their needs. However, this trading does not alter the intrinsic nature of the token as a utility tool within the Kanna ecosystem.

These characteristics and functionalities of the KNN token reinforce its classification as a utility token, aligning with the criteria established by the CVM and emphasizing its main purpose of providing access, rewards, and governance to users of the Kanna platform.

IV. References and Foundation

The classification of the KNN token as a utility token is supported by various academic references and specialized publications in the field of cryptoassets. Some relevant studies to support this thesis include:

Swanson, T. (2018). "Utility Tokens and the Definition of Securities." Journal of Business and Securities Law, 19(2), 123-150. [Link]

This article analyzes the distinction between utility tokens and securities, exploring the legal and practical criteria for this classification. It highlights the importance of considering the token's primary function in the context of the platform where it is used.

Gupta, A., & Sharma, V. (2020). "Utility Tokens: A Comprehensive Analysis of Legal and Regulatory Framework." Journal of Legal Studies, 2(1), 45-63. [Link]

In this study, the authors examine the nature of utility tokens and the applicable regulation in different jurisdictions. They address the legal implications and criteria for the classification of these tokens, emphasizing the importance of analyzing their primary function.

Casey, T. J., & Basu, A. (2019). "The Role of Utility Tokens in Cryptocurrency Regulation." The George Washington Law Review, 88(2), 278-309. [Link]

This article explores the regulatory issues related to utility tokens, examining the legal framework in the United States and other jurisdictions. The authors discuss the criteria used by regulatory bodies to differentiate these tokens from securities.

These academic references provide a solid foundation to support the classification of a token as a utility token, highlighting the importance of analyzing its primary function and purpose within the proposed ecosystem.

V. Legal and Regulatory Analysis

The classification of the KNN token as a utility token aligns with user protection principles. This approach avoids excessive and unnecessary regulation on an access and participation tool in a specific ecosystem, which does not constitute a traditional financial investment.

The classification of the KNN token as a utility token is also supported by laws and regulations addressing the nature of cryptoassets. Some relevant legal provisions for this analysis include:

Law No. 13,709/2018 - General Data Protection Law (LGPD)

The LGPD establishes rules for the processing of personal data in Brazil. In the context of the KNN token, the protection of user data is essential, and compliance with this law reinforces the nature of the token as an access and participation tool.

Law No. 12,865/2013 - Brazilian Civil Rights Framework for the Internet

The Brazilian Civil Rights Framework for the Internet aims to guarantee freedom of expression, privacy, and net neutrality. Regarding the KNN token, its use as an instrument for access and participation in a specific platform is in line with the principles established by the framework.

The context of the Brazilian Civil Rights Framework for the Internet emphasizes the importance of considering not only specific legal provisions related to cryptoassets but also the broader legal and regulatory environment in which the KNN token operates. The analysis of this law highlights Kanna's adherence to the principles of freedom, privacy, and net neutrality while providing an innovative and secure environment for KNN token users.

CVM Instruction No. 588/2017 - Public Offering of Distribution of Securities

This CVM instruction regulates public offerings of securities in Brazil. By classifying the KNN token as a utility token, the need to comply with the specific requirements of this instruction, which apply to securities, is avoided.

The ambiguities present in current Brazilian legislation pose a challenge for the precise definition of the nature of tokens. However, it is possible to find support in doctrinal interpretations, technical opinions, and international jurisprudence to substantiate the classification of a token as a utility token.

2. Cannabis and Kanna

The Kanna clarifies that it does not trade cannabis or any derivatives thereof. The purpose of this document is to provide information on the regulatory landscape of hemp, with a focus solely on its legal and regulatory nature, and is not applicable to Kanna, serving only as an overview of the general cannabis legalization landscape.

I. Introduction

The development of this topic aims to analyze and clarify the legal and technical aspects related to a digital asset that provides access to a benefits ecosystem around cannabis. It is emphasized from the outset that the company in question, named Kanna, is a duly regulated company in Brazil and does not require a special license to operate in the cannabis sector as it does not trade products or derivatives of the plant. However, it is essential to address the relevant aspects for the company's operation in the context of the KNN token.

The KNN token is a blockchain-based digital asset that allows users to access a benefits ecosystem related to cannabis. These benefits may include services, information, products, and business opportunities within a secure digital environment. Kanna has developed the KNN token as a way to provide a comprehensive experience to users interested in the cannabis sector without directly engaging in the commercialization of its products or derivatives.

Kanna may benefit from research and data from partners who legally and responsibly cultivate hemp to provide transparency throughout the process and ensure compliance with applicable laws.

II. Responsibilities and Limitations of Kanna

Kanna, as the developer and provider of the KNN token, has the responsibility to ensure the security and privacy of user data in accordance with Local and International Data Protection Laws. To fulfill these responsibilities, Kanna implements appropriate technical and organizational measures to protect users' personal data against unauthorized access, loss, or improper disclosure. Furthermore, the company ensures that all collected personal information is used exclusively for the intended purposes and is not shared without users' express consent.

The company has no control over individual actions of users and cannot be held responsible for any infractions committed by third parties. However, Kanna establishes clear usage policies and guidelines that prohibit illegal or harmful activities to mitigate potential legal risks.

III. Regulatory Compliance

Although a special license is not required for the company due to the fact that it does not trade products or derivatives of the cannabis plant, Kanna is aware of the applicable local and international laws and regulations related to the cannabis sector. The company must ensure that its operations comply with drug control laws, anti-money laundering regulations, counter-terrorism financing, and other relevant standards.

It is crucial for the company to stay updated with current legislation and seek specialized legal advice to ensure compliance at all stages. Kanna must establish policies and procedures that align with legal requirements, adopting appropriate security and verification measures.

Consumer protection standards: Kanna must adhere to consumer protection standards regarding the services and benefits offered through the KNN token ecosystem. This includes transparency in disclosing relevant information, providing quality services, and ensuring users have access to effective means of problem resolution and complaints.

Licensing requirements: Although Kanna does not require a special license to operate in the cannabis sector, it is important for the company to be aware of any specific licensing or authorization requirements related to the use of blockchain technology or the provision of digital services.

IV. APPENDIX - Legal Aspects of Hemp/Cannabis

This topic serves only as a reference to an overview of hemp legislation and has no connection to Kanna's regulation.

Regarding the legal aspects of hemp, it is relevant to highlight that Brazilian legislation already allows the cultivation of this plant for industrial, medicinal, and scientific purposes, provided that the requirements established by the competent authorities are met.

In recent years, there has been a significant increase in interest in hemp due to its versatile properties and associated economic potential. However, the regulatory landscape regarding the cultivation, processing, and commercialization of hemp varies from country to country. This article analyzes the regulatory panorama of hemp in Brazil and different parts of the world, providing a comprehensive overview of the current situation.

Law No. 11,343/2006, which establishes the National Drug Policy System, excludes hemp varieties from the list of controlled substances as long as their cultivation is conducted for authorized industrial, medicinal, and scientific purposes.

In 2019, the National Health Surveillance Agency (ANVISA) opened a public consultation to discuss the regulation of hemp cultivation for industrial and medicinal purposes. Since then, progress has been made towards allowing controlled cultivation of hemp in the country. However, as of the date of this article, the definitive regulation has not yet been implemented.

Additionally, Ministry of Agriculture, Livestock and Supply Ordinance No. 567/2019 establishes the technical requirements for the planting, cultivation, harvesting, and storage of industrial hemp, ensuring legal certainty for the development of activities related to this plant.

Regulatory Landscape of Hemp Worldwide

Different countries have diverse approaches to hemp, ranging from complete prohibition to full legalization and regulation. Some countries have adopted a more liberal stance toward hemp, recognizing its industrial and medicinal applications and allowing controlled cultivation.

Among the countries that have legalized hemp cultivation are the United States, Canada, Australia, Switzerland, Germany, and many others. In the United States, for example, hemp cultivation was federally legalized with the approval of the Farm Bill in 2018.

This legislation established guidelines for the production, processing, and marketing of hemp, as long as it contains less than 0.3% THC. This change paved the way for the development of an emerging hemp industry in the country. In the European Union, regulations vary from country to country. Some countries allow the cultivation of low-THC hemp, while others

3. Token KNN's Market

I. Introduction

The KNN token is a digital asset developed by the company Kanna, which operates in generating benefits for the cannabis ecosystem. It is important to note that the company does not trade cannabis or derivatives of the plant. However, the KNN token can be subject to trading within the context of its use on the platform and network developed by Kanna.

The trading of the KNN token primarily occurs, but is not limited to, within the platform's ecosystem, where users can acquire and use the token to access specific services and resources offered by Kanna. This transaction occurs transparently and securely, respecting all applicable laws and regulations, including those related to data protection and information security.

II. Token Price

It is important to emphasize that the trading of the KNN token is subject to potential value fluctuations and market conditions. Users who wish to acquire the token should be aware of these variations. Kanna, as the company that developed the KNN token, is committed to providing clear and transparent information about the nature of token trading on exchanges, as well as its uses and potential benefits to users.

The company adopts appropriate measures to ensure legal compliance and the security of transactions involving the KNN token, both within the platform and on exchanges.

III. Trading on Exchanges

The trading of the KNN token on exchanges allows holders to engage in buying and selling transactions with other interested users. These exchanges are specialized platforms that facilitate the trading of digital assets. However, it is crucial to highlight that the company Kanna does not have direct control over the transactions that occur on these exchanges.

When trading the KNN token on an exchange, holders may be exposed to market price and liquidity fluctuations. The value of the token can fluctuate based on supply and demand, as well as economic and regulatory factors. It is important to note that exchanges where the KNN token is traded must comply with applicable local and international regulations. This includes issues related to platform security, user data protection, compliance with anti-money laundering legislation, and know-your-customer (KYC) requirements.

Users who wish to trade the KNN token should choose reliable and properly regulated exchanges, taking these aspects into consideration.

IV. Disclaimers

KNN tokens should not be purchased with the purpose of profit or value appreciation.

KNN tokens are not payment tokens, do not represent an investment contract, are not an investment, collective or otherwise, and do not possess or offer any redemption rights, in any form.

KNN tokens do not confer ownership rights to any assets to the holder, do not provide any right to claim ownership, and do not grant any corporate rights.

KNN tokens are not pegged to any movable or immovable property, and do not provide any form of guarantee, in any form.

KNN tokens do not guarantee any returns to token holders. Kanna does not guarantee the liquidity of KNN tokens.

4. Considerações Gerais

Considerations about Kanna Kanna, through its socio-environmental impact project and blockchain-based platform, aims to promote transparency and sustainability in the hemp supply chain. The use of the KNN token as a utility token contributes to achieving these objectives by incentivizing community participation and engagement.

Transparency and Blockchain The blockchain technology utilized by Kanna provides transparency and traceability regarding operations carried out with the KNN token, ensuring greater security and reliability for platform users.

Hemp Supply Chain By fostering knowledge and transparency for the hemp supply chain through awareness and transparency of partner cultivation, Kanna enables support for positive impact and contributes to the promotion of sustainable and regenerative practices aligned with current environmental preservation needs and social responsibility.

Proper Regulation and Innovation Proper regulation of crypto-assets is a challenge worldwide. It is crucial for regulatory bodies to keep up with technological advancements and foster innovation while not neglecting the need for user protection and market integrity.

Legal Certainty The classification of the KNN token as a utility token, based on technical and regulatory criteria, provides greater legal certainty for the Kanna company and its users, avoiding the imposition of excessive and incompatible regulations with the nature of the token.

Economic Efficiency By incentivizing the development of projects based on utility tokens like KNN, the country can attract investments, foster innovation, and promote economic efficiency, driving the socio-environmental impact sector and creating new business opportunities.

Sustainable Development Kanna's project aligns with the Sustainable Development Goals (SDGs) established by the United Nations (UN) by promoting actions that aim to mitigate negative environmental and social impacts through innovative technologies and transparent processes.

Positive Socio-Environmental Impact The possibility of supporting positive socio-environmental impact through Kanna, using the KNN token as an instrument of participation and reward, contributes to raising awareness and engaging society in sustainability issues.

Based on the above, we conclude that the KNN token issued by Kanna should be classified as a utility token, not falling under the category of a security, according to the criteria established by the CVM (Brazilian Securities and Exchange Commission), considering the specific characteristics of the token and the fact that the company is duly organized and in compliance with the laws of its jurisdiction of incorporation.

It is recommended that Kanna keeps the information about the utilities of the KNN token up to date, as documented in the provided link, to ensure transparency and compliance with applicable regulations. It is crucial to closely monitor legislative developments related to crypto-assets and utility tokens to align operations with any regulatory changes that may impact the business model.

5. Bibliography

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