{"id":345,"date":"2018-02-15T20:17:28","date_gmt":"2018-02-16T01:17:28","guid":{"rendered":"https:\/\/timestampmag.com\/?p=345"},"modified":"2018-02-15T20:17:28","modified_gmt":"2018-02-16T01:17:28","slug":"canadian-securities-exchange-to-bring-crypto-fundraising-under-regulation","status":"publish","type":"post","link":"https:\/\/timestampmag.com\/2018\/02\/15\/canadian-securities-exchange-to-bring-crypto-fundraising-under-regulation\/","title":{"rendered":"Canadian Securities Exchange to Bring Crypto Fundraising Under Regulation"},"content":{"rendered":"

The Canadian Securities Exchange (<\/span>CSE<\/span><\/a>) \u200eis taking first steps to bring crypto fundraisers, or \u200einitial coin offerings (ICOs), within the regulatory framework. While ICOs have come \u200eunder regulatory scrutiny this year, the CSE believes that digital crowdsales can be done right, \u200ewith built-in safeguards to avoid fraud. \u200e<\/span><\/p>\n

Specifically, the Canadian Securities Exchange is introducing a securities clearing and settlement platform \u200ewhich is being built on the Ethereum blockchain.\u200eThe platform creates an innovative funding model for businesses through which they will \u200ebe able to issue conventional equity and debt using the so-\u200ecalled security token offerings (STOs). The tokenized securities will also give retail investors the \u200ecomfort of knowing that they are purchasing instruments that can stand up to the scrutiny of \u200eregulation<\/span><\/p>\n

Kabuni Technologies Inc., a Vancouver-based startup that tracks 3D printing products \u200eon its blockchain-based platform, is the first company to file a prospectus \u200ewith British Columbia\u2019s regulator to win approval of issuing tokens to investors through a \u200eSTO.\u200e<\/span><\/p>\n

In addition, the tokens could then be traded on the Canadian Securities Eexchange\u2019s equity trading platform, which \u200emarks the first time a tokenized security has been listed for trading on a regulated exchange.\u200e<\/span><\/p>\n

Although Kabuni will have to go through a lengthy process to launch its token, we expect there will be many more soon in existence. \u200eThe CSE platform is necessary in order to lower the \u200ebarriers to entry for launching securities, similar to how Ethereum \u200emade it easy to launch utility coins.\u200e<\/span><\/p>\n

Indeed, the emergence of securities tokens could be the \u200enext mega-trend in the crypto space as STO tokens are backed by \u200ereal assets like equity, shares or commodities.\u200e<\/span><\/p>\n

Like many jurisdictions around the world, Canada is looking for ways to regulate \u200eICOs and <\/span>harness the unique features of blockchain technology<\/span> without \u200estifling innovation or driving startups to other jurisdictions.\u200e<\/span><\/p>\n

Unlike ICOs, the STOs will be subject to full regulation by applicable securities \u200ecommissions. The new platform also answers one of the most \u200epressing questions facing the crypto and financial services communities, which is how \u200eregulatory authorities will treat various digital assets. \u200e<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Canadian Securities Exchange (CSE) \u200eis taking first steps to bring crypto fundraisers, or \u200einitial coin offerings (ICOs), within the regulatory framework. While ICOs have come \u200eunder regulatory scrutiny this year, the CSE believes that digital crowdsales can be done right, \u200ewith built-in safeguards to avoid fraud. \u200e Specifically, the Canadian Securities Exchange is introducing […]<\/p>\n","protected":false},"author":3,"featured_media":346,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-classic-boxed.php","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[3,8,9,10,11],"_links":{"self":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/345"}],"collection":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/comments?post=345"}],"version-history":[{"count":0,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media\/346"}],"wp:attachment":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media?parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/categories?post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/tags?post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}