In a debate that has been ongoing for years now, the Canadian Supreme Court has issued a ruling on the development of a national securities regulator. This ruling has the potential to affect the development of the crypto industry. Whether this will be in a positive or negative manner is not clear.
It was found that the development of such a regulatory body would fall within the constitution. Furthermore, they have ruled that also falling within the constitution is the potential for national regulation of various levels of investments within trade and commerce.
Although this ruling will allow for an oversight body to be created, it does not mean this will happen. To do so the nation’s provinces and territories would still need to each ‘play-ball’. It is believed that various provinces will want to retain some semblance of autonomy, as their individual needs may not necessarily align with that of the nation as a whole. One such province is Quebec, with the Finance Minister, Eric Girard, stating, “We acknowledge the Supreme Court of Canada ruling, but intend to retain our autonomy and keep our expertise in Quebec.”
Despite the hesitancy on the part of Quebec, the following provinces and territories have each indicated that they will take part in the formation of a ‘Canadian SEC’.
- Prince Edward Island
- New Brunswick
- British Columbia
Fragmented Oversight Throughout Canada
10 Provinces, and 3 Territories. Each have their own regulatory body, enforcing varying rules based upon their respective geographical region. This fragmentation has long been a point of argument for those that want a Federal regulator. They believe that Federal oversight will result in a reduction of redundancies, while increasing investor protection.
What remains unclear is the level of fragmentation within the political parties. The issue at hand is one that was inherited by the current Liberal government. To date, the current government has not indicated their stance either way.
An Example to the South
Those in the United States have witnessed first-hand over past years the power that the SEC (Securities Exchange Commission) wields. While they have been slow to release updated guidelines with regards to the world of cryptocurrency, they have had no hesitation in enforcing existing guidelines.
After months of warning the industry of the coming reckoning, the SEC has delivered on their promise. In a flurry of activity in recent days, we have seen the SEC charge DEX founders, and shutdown various ICOs.
How will a potential Canadian national securities regulator view the cryptocurrency industry? Will they take cues from their counterparts to the south?
For now, any token issuers within Canada should take heed and ensure compliance with not only current guidelines, but plan for a more restrictive future.
TokenMarket to Host Security Token Offering
In a recent announcement, TokenMarket indicated that they will be hosting an upcoming security token offering. This event will take place on their own issuance platform, under the watch of the Financial Conduct Authority. The fundraising event will see the company strive to sell £10 million worth of digital securities to accredited investors. TokenMarket indicates that this represents their Series A, and that all past endeavours and growth have been achieved through self-funding.
The reason for hosting an STO is due to the recognition of the impending digital securities boom. TokenMarket wants to be well poised for the future of the rapidly growing industry. By raising these funds, they will ensure that their development and expansion keeps place with the market.
This STO comes less than a year after being accepted by the UK’s Financial Conduct Authority. This governing body will act an oversight role, ensuring compliance with existing rules and regulations that pertain to digital securities.
Multiple representatives from TokenMarket spoke on the use of blockchain, and their very own security token offering.
Ransu Salovaara, CEO & Cofounder of TokenMarket, stated,
“Europe has markedly failed to match the prowess of the US in nurturing technology champions that drive innovation, economic growth, and job creation…At the same time, everyday investors are often shut off from exciting investment opportunities. We firmly believe that STOs will help to solve this dilemma by democratising access to finance whilst providing the same investor protections as traditional securities.”
Mikko Ohtamaa, CTO & Cofounder of TokenMarket, stated,
“We believe we have constructed a fully compliant yet non-custodial, blockchain-based platform that helps early-stage companies raise funding while potentially giving investors earlier liquidity.”
TokenMarket identifies as the most established issuance platform throughout Europe. Operating out of Gibraltar, the company has managed to grow into what they are today, since being founded in 2016.
Financial Conduct Authority
Known as a ‘Conduct Regulator’, the Financial Conduct Authority oversees almost 60,000 financial services within the UK. Above all, this role entails that the FCA ensures markets operate with honesty and transparency. This is done with the goal of providing a fair market for all industry participants.
The FCA has been in operation since 2013.
In Other News
While the TokenMarket STO marks a first under the watch of the FCA, TokenMarket has, in the past, assisted various companies with their own funding campaigns. These efforts have seen over £240 million raised in only two years.
The following article details another company poised to benefit in the near future, from the services and experiences offered by TokenMarket.
SPiCE VC Continues Portfolio Expansion with InvestaCrowd
The SPiCE VC portfolio continues to grow. The trendsetting company has recently announced that they have invested in InvestaCrowd.
Through this investment, SPiCE token holders will now gain exposure to the growing InvestaCrowd. A digital securities platform that operates under a licence given by the Monetary Authority of Singapore. The goal of InvestaCrowd is to not only provide services as an issuance platform for digital securities, but to develop a trading exchange. The development of an exchange is key to achieving the oft touted liquidity that digital securities stand to offer investors.
With this news, the SPiCE VC portfolio now totals 11 promising companies. The following is a list of these projects.
- Crypto & Derivatives
As made obvious by this list, SPiCE VC is comprised of both promising start-ups and heavy hitters within the burgeoning digital securities sector.
The following was a statement made in the press release, regarding the inclusion of InvestaCrowd into the SPiCE VC portfolio.
Tal Elyashiv, Co-Founder of SPiCE VC, stated,
“We are excited about this investment and the partnership with InvestaCrowd. As one of the leading investment banking platforms, and in light of the strong expected growth in tokenizing assets through Digital Securities, InvestaCrowd is set to be one of the fastest growing platforms in the region.”
InvestaCrowd is a Singaporean company, which was founded in 2015. They market themselves as the leading digital securities platform within Asia. They have accomplished this by offering not only the issuance of digital securities, but promise of eventual secondary market trading as well.
SPiCE VC is a venture capital fund tailored towards companies in the blockchain industry. Led by Carlos Domingo, Tal Elyashiv, and Ami Ben-David, SPiCE was one of the first in the world to successfully complete their own digital security offering.
The aforementioned DSO took place in the tail end of 2017.
In Other News
Here are a few articles detailing recent events in the world of digital securities. Of note, is a recent article detailing the very same SPiCE VC discussed here today.
REMCO Software to see Security Tokens Listed on LATOKEN
REMCO Software is in the midst of completing a ‘security token offering’. As you may know, this refers to a crowdfunding campaign tailored towards accredited investors. During the offering, investors are able to purchase digital securities in the form of a token, typically representative of equity shares within the issuing company – an efficient merger of traditional and future finance.
Recently, REMCO announced good news, as they have secured an agreement that, once issued, will see their tokens listed for trading on the LATOKEN platform. By providing a flexible listing platform, LATOKEN will enable investors to easily trade between REMCO tokens and FIAT currencies. The ability to do so is expected to result in new-found levels of liquidity, not normally witness when dealing with such assets.
In their press release, representatives from both REMCO and LATOKEN spoke on the agreement, and what it means for the industry.
“We are especially pleased to welcome REMCO token in the pool of our future projects. Their business model is both practical and very innovative. It brings a great deal of added value to the industry.”
“LATOKEN’s innovative approach appealed to us…There are many crucial steps to getting this business off the ground, and we appreciate reaching this milestone with LATOKEN.”
REMCO is a young company looking to revolutionize the remittance industry. They intend to do so, by utilizing traits inherent to blockchain technology that will allow for greater transparency and efficiency in finance. They were founded in 2018, and are based out of Laurel, Maryland.
Company operations are currently spearheaded by CEO, Peter Ojo. Under his watch, the company hopes to successfully complete a security token offering, which will facilitate their envisioned future.
LATOKEN refers to ‘Liquid Assets Platform’. Founded in 2017, CEO, Valentin Preobrazhenskiy, has guided the platform into becoming a promising player within the industry. As their name implies, the platform aims to bring liquidity to a variety of assets. Through their FIAT gateways, they have now begun to attract the attention of companies, such as REMCO.
In Other News
While this is the first time that each of these companies have graced our headlines, there is no shortage of news in the industry. Here is a brief look at a few articles detailing recent partnerships, and industry developments.
- Malta AI & Blockchain Summit handing out 100 free booths to startups
- London’s Blockchain Conference; Blockchain Expo Global Exhibition announces expert speakers
- South East Asia’s Mega Blockchain Conference – Interview
- Malta AI & Blockchain Summit throwing massive show in May, 2019
- 2019 Blockchain Convergence Summit : Chain Plus+ Kicked Off with Great Fanfare… Attended by All Major Blockchain Investors
- TokenMarket to Host Security Token Offering February 16, 2019
- SPiCE VC Continues Portfolio Expansion with InvestaCrowd February 16, 2019
- Globex Licences ATS Platform to First Growth Funds Limited February 15, 2019
- REMCO Software to see Security Tokens Listed on LATOKEN February 15, 2019
- Magic BlockchainQA to Collaborate with Securitize February 14, 2019