Are real estate tokens usually treated as securities?

In most countries, a real estate token that gives you ownership, profit-share, or fixed income is treated as a security.

Regulators look at what the token does, not just the name. If investors give money to a common project and expect profit, the deal is regulated like shares or bonds.

In the US this follows the Howey Test. In the EU, many real estate tokens are handled under MiFID II rules, not as “simple crypto”. Other regions use similar ideas: “same activity, same risk, same rules”. This means projects must follow securities law, use exemptions, and work with licensed partners.