Filing with the OSC
Today, a pair of Canadian companies has filed with the Ontario Securities Commission for approval in launching a digital-asset platform. This filing was completed by, both, Omega Securities and 4C Clearing Corporation.
If approved, this pairing of companies should work well together, in providing investors with a comprehensive platform, tailored specifically towards digital assets.
Expansion of Services
With regards to Omega, this filing represents an expansion of services already offered. The expansion will allow for the inclusion of digital assets, in their longstanding ATS.
In doing so, the company will open support for security token offerings, along with leading cryptocurrencies.
In their filing, 4C looks to provide a suite of ancillary services, which work to provide clients with a comprehensive platform. These services include, not only a custody solution, but clearing and settlement capabilities as well.
“We continue to move our digital asset marketplace and our clearing, settlement and custody solution for regulated investment dealers forward. The filing of Omega’s F2 and 4C’s request to operate as a clearing agency are natural next steps. We continue to receive support and positive feedback from the regulated investment dealer community and look forward to launching the platform in due course”
Omega Securities is a Toronto based company, which was founded in 2007. In the time since, Omega has established themselves as an innovative company, providing their clients with a variety of investment based services.
4C Clearing Corporation
4C is another Canadian company, based in Toronto. Launched in 2017, 4C was founded by Laurence Rose – the Chairman of Omega Securities. This young company is looking to establish themselves as a diverse option for companies in need of services such as clearing, settlement, custody.
Ontario Securities Commission
The OSC is the Canadian variant of the Securities and Exchange Commision (SEC). This regulatory body, however, governs the Province of Ontario. The OSC is responsible for, not only the protection of industry participants, but for establishing a fair and transparent market.
While their influence in the industry may be unmatched within Ontario, this may change in the future. There have been rumblings in recent months, regarding a restructuring of regulatory bodies, such as the OSC within Canada. Check out the article below to learn more about the potential fate of the OSC.
In Other News
Beyond the two companies discussed here today, Canada has shown a proclivity for producing companies within the world of digital assets. Here are a few articles discussing companies based out of Canada, and what they have accomplished in recent months
META 1 Coin Threatens Securities.io with Litigation for Reporting on ICO Fraud
On August 4th, 2020 Securities.io was threatened with legal action by Robert Paul Dunlap, the legal advocate for META 1 Coin, the creator, owner, controller, and also one of the defendants in the Complaint filed by the SEC. The threat followed the publication of an article titled “SEC Files Charges Against ex-Senator David Schmidt” which was published on March 25, 2020.
Who is META 1 Coin?
META 1 Coin raised funds in April 2018 by performing an Initial Coin Offering (ICO). As described by an SEC filing META 1 COIN raised at least 4.48 million from over 150 investors in the United States and internationally.
In order to raise funds misleading claims were made. These were some of the claims:
- They owned $1 billion in art insured against loss by a surety bond, and later, that META 1 owned $2 billion in gold assets;
- KPMG, one of the largest independent financial audit firms in the world, was auditing Meta1’s gold assets;
- Meta1 formed its own investment bank and developed its own digital currency exchange;
- the Coin is safe and risk-free and will never lose value;
- Each Coin, sold for either $22.22 or $44.44 would in two years be worth $50,000—up to a 224,923% return—as a “very conservative value.”
Unfortunately many investors did not perform adequate due diligence as the SEC claims the tokens were backed by nothing.
The letter received by META 1 accused the SEC and Securities.io of being fraudulent, below are some of the accusations/threats and our responses.
If SECURITIES.io was to do any due diligence at all you would know it was a fictitious story fabricated by the SEC in order to make all digital assets look fraudulent.
Our response: Securities.io has the responsibility of reporting on both legitimate projects, and fraudulent projects. Every time an investor is taken advantage with false claims whether it is the form of an ICO, or other fraudulent behavior, it destroys the credibility of the industry. We also believe in the credibility and the mission of the SEC which is stated as “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation”.
So time will tell if SECURITIES.io is really about digital assets or just another STATE run publisher of malicious defamation.
Our response: Perhaps this is pushing a conspiracy theory or an agenda of being owned and controlled by a deep state. Either way, Securities.io is NOT owned in part or in whole by any government entity in any jurisdiction.
Today is August 4th 3:25 EST 2020 and a claim will be made in 24 hours and It will decimate SECURITIES.io if the named article is not immediately removed.
Our Response: This has been noted. We have fact checked the original article and it remains accurate.
Additionally, I am ordering a follow-up update of the facts regarding the validity or META 1 Coin
Our Response: We have updated the article to reflect new information regarding the fraud behind the initial ICO raise. We were unaware that information was missing, thank you for notifying us of this. Whenever we are notified of errors in reporting we take corrective action.
Unfortunately, the digital assets industry continues to result in many operators that are taking advantage of the naivety of investors. It is our responsibility to report on this unethical behavior and to report on any actions taken against these rogue operators by the SEC or other government entities. We will continue with our mission.
Polymath Launches ‘Token Studio 2.0’ on ‘Polymesh’ Digital Securities Blockchain
Token issuer Polymath has had a busy few weeks. Just over one month ago, the digital securities pioneer announced the launch of Aldebaran – the first iteration and testnet of the Polymesh blockchain. Now Polymath has announced version 2.0 of its ‘Token Studio’, a suite of token services, which now runs on the Polymesh blockchain.
When Polymath uses the term ‘Token Studio’, it is referring to a suite of services, which allows clients to create, issue, and manage digital securities – a vital part of Polymath’s goal to simplify token creation.
— Polymath (@PolymathNetwork) August 1, 2020
The first iteration of Polymath’s Token Studio was based on the Ethereum blockchain. With the development and pivot towards the use of Polymesh, a new Token Studio was needed – one that was designed for this purpose-built blockchain.
With the launch of this version of Token Studio, Polymath has now opened up the ability for clients to trial its capabilities on the recently released Polymesh testnet ‘Aldebaran’.
Polymath notes that by utilizing Token Studio on the Polymesh blockchain, clients will benefit in various ways.
- Clients have the ability to create digital securities tailored to their needs – this includes asset type, ticker symbols, asset identifiers, etc.
- Built-in services including KYC checks. This ensures that only appropriate investors can gain access to digital securities created through the use of Polymesh.
- Arguably, the biggest draw towards a purpose-built blockchain is the ability to integrate stringent compliance measures – a necessity when dealing with digital securities. This means that, regardless of jurisdiction, token issues can be assured that their issuances remain in full compliance with securities regulations.
With Token Studio simplifying the creation and issuance process, there should be nothing holding back companies from creating compliant digital securities on the Polymesh blockchain. The timing of the Polymesh-based Token Studio is ideal; anticipated security token exchange Archax previously announced support for Polymesh tokens when it launches.
In the constellation, Taurus, the brightest star is Aldebaran – commonly referred to as the ‘bulls-eye’. This is an apt name for a company that utilizes a bull as its mascot and represents a bright spot within the digital securities sector.
Aldebaran represents the first testnet of the purpose-built Polymesh blockchain. Polymath has spoken on the rationality behind creating a project such as this, stating,
“The most important learning has been that security tokens cannot gain adoption and acceptance from regulators and institutions with a general-purpose blockchain; security tokens need something more specialized that addresses the foremost concerns of governance, confidentiality, identity, and compliance.”
For holders of Polymath’s ‘POLY’ tokens, a bridging service has been created to convert these assets to ‘POLYX’ – A token with similar functionality, but based on the Polymesh blockchain, rather than Ethereum. Along with this bridging service, Polymath will soon be launching a Polymesh wallet – providing a way to safely store these assets, while supporting staking capabilities.
The next version of the Polymesh testnet is expected to launch in Q4 of 2020, with the full mainnet launch in Q1 of 2021.
Founded in 2017, Polymath is a service provider for the digital securities sector, with operations based in Toronto, Canada. To date, Polymath has helped facilitate the creation of hundreds of digital securities.
In Other News
Polymath is not the only company to note the need for purpose-built digital security solutions. We have recently taken a closer look at another example of this, as NEM gears up for the launch of its offering, ‘Symbol’.
Make sure to peruse our recent interview with NEM Ventures Managing Director, Dave Hodgson. Here, we learn more about Symbol, and why such a solution is needed.
‘Mrs. Antonia’ Scam Preys on 1M Clients Affected by ePayments FCA Imposed Lockdown
Twitter hacks, news outlet impersonations, Ponzi schemes, and now ‘Mrs. Antonia’ – the world is rife with scams, perpetrated by criminals looking to prey on the naïve.
In this new scam, it appears that bad actors are looking to prey on those that have already endured trying times.
Users of payment processing platform, ePayments, which have had their funds frozen, are being contacted by a person or group posing as ‘Mrs. Antonia’. In these instances, ‘Mrs. Antonia’ promises the affected ePayments clients that they can help ‘unfreeze’ their funds – this, however, is a lie. The person or people behind the scam go as far as creating fake testimonials from people claiming that ‘Mrs. Antonia’ did indeed help them.
Unfortunately, Mrs. Antonia does not exist, and she cannot help. The actions of these criminals have prompted ePayments to release a statement, informing their clients of this scam.
“PLEASE be aware – this is a scam. We are unable to release any customer funds at present and so any claims by any third parties of this nature are not true.”
For months now, over 1 million clients of payment processor, ePayments, have had access to their funds revoked, due to a Financial Conduct Authority (FCA) imposed lockdown. To this day, the reasoning behind these measures is not fully known, aside from lapses found in ePayments anti-money laundering (AML) procedures.
With this lockdown extended for months now, it is understandable that those affected are growing impatient. As a result, many account holders might just be swayed by the promises made by these criminals.
Upon addressing the situation, ePayments has attempted to ease the fears of its clients by stating,
“We recognise that time has elapsed since we suspended business and we are truly sorry that we have put you, our customers, in this position. We wish to assure you once again that your funds are still safeguarded as normal.”
Sadly, we must all be vigilant, and on guard for scams. They are increasingly prevalent, as we increase our reliance on technology, with the ePayments situation simply being one example.
The world of blockchain is no stranger to scams, and has resulted in multiple which were staggering in size.
- $4 billion stolen through Ponzi scheme
- $6 billion defrauded from investors
- Recently arrested 27 individuals connected with the scam
These two scams alone affected millions of investors, defrauding them of roughly $10 billion. While actions have been taken in an attempt to hold the offenders accountable for their actions, the sad truth is that the vast majority of those affected will never see their funds again.
Founded in 2010, ePayments is a global payments processor based out of the United Kingdom. Through its services, ePayments has amassed over 1million clients, representing 100 countries.
CEO, Mikhail Rymanov, currently oversees company operations.
*Upon contacting ePayments for commentary, no response was received*