“Many” Cryptocurrencies and ICO Tokens Meet Definition for Canadian Securities Regulations

Canadian securities regulators have released a wide-ranging statement on initial coin offerings (ICOs).

The statement from the Canada Securities Administrators (CSA) is focused on “Cryptocurrency Offerings” and provides the clearest indication yet as to how regulatory bodies plan to oversee the emerging funding model.

The notice outlines the requirements for companies involved in the launch and management of ICOs, as well as the exchanges that plan to list those assets for trading. Perhaps most notably, it reveals that “many” of the digital tokens investigated by regulators in Canada fall under the definition of a security, thereby triggering a range of legal requirements.

The notice states:

“We have received numerous inquiries from fintech businesses and their legal counsel relating to ICOs/ITOs. With the offerings that we have reviewed to date, we have in many instances found that the coins/tokens in question constitute securities for the purposes of securities laws, including because they are investment contracts. In arriving at this conclusion, we have considered the relevant case law, which requires an assessment of the economic realities of a transaction and a purposive interpretation with the objective of investor protection in mind.”

The sentiment that such tokens are more likely to fall under the definition of a security is echoed elsewhere in the notice, where staffers point out that some ICO promoters have “[taken] the position that the coins/tokens are not subject to securities laws.”

“However, in many cases, when the totality of the offering or arrangement is considered, the coins/tokens should properly be considered securities,” the CSA wrote. “In assessing whether or not securities laws apply, we will consider substance over form.”

The notice also includes guidance for firms looking to create cryptocurrency investment funds in Canada. It invites firms that are interested in launching an ICO to consider signing up for a so-called regulatory sandbox, through which new financial products can be tested in a limited setting.

“In order to avoid costly regulatory surprises, we encourage businesses with proposed cryptocurrency offerings to contact their local securities regulatory authority to discuss possible approaches to complying with securities laws,” the notice states.

The release comes after regulators in Ontario published an advisory on ICOs in March, and just under a month after the US Securities and Exchange Commission stated that its rules may apply to some token sales.


How to use Altcoins with SolidTrust Pay

Using Altcoins with SolidTrust Pay.jpg

Did you know that you can buy and sell Bitcoin with SolidTrust Pay? Simply create an account and follow these instructions! You can either buy Bitcoin from your account or convert it to USD and make a withdrawal using the method of your choice. We use a service that tracks the value of Bitcoin and exchanges it at whatever the current rate is.

In addition to Bitcoin, there are several other cryptocurrencies that are gaining recognition and popularity, including Litecoin, Ether and Dogecoin. With SolidTrust Pay, you can turn these “altcoins” into cash by depositing them into your SolidTrust Pay wallet and having them instantly converted to USD.

Here’s how:

  1. Navigate to your Deposit Money Area by clicking My Money -> Deposit Funds within your account and choose the “Bitcoin/Altcoins” option. altcoins1

  2. Enter the amount of money in USD you wish to withdraw from your altcoin wallet, check the Bitcoin Deposit option, enter your secondary password and click Deposit Fundsaltcoins3

  3. Carefully read the details of your transaction, including the fees and total amount you will receive, then press the CONFIRM Transaction button. altcoins4

  4. Choose the coin you wish to use for your deposit from the dropdown menu (in the examples below, we chose Ether). altcoins5.png altcoins6

  5. Enter your altcoin address, click Pay with Ether and press Continuealtcoins7

Please note: Paying with altcoins takes a little longer than paying with bitcoins.
Expect a delay of 30-90 seconds before we register your payment.

The following is an up-to-date list of cryptocurrencies that you can use with SolidTrust Pay:

Bitcoin
Litecoin
Ether
Startcoin
TetherUSD
Dogecoin
Reddcoin
Peercoin
StorjX
Nubits
Novacoin
Digibyte
Mastercoin
Counterparty


Tracking Bitcoin over the Past Year

The rising price of a bitcoin has been breaking records and making headlines consistently since the price rally began back in December around Christmas time, 2016.

Bitcoin price SolidTrust Pay past year august 2017

Over the past year, Bitcoin prices have increased over 600% in total and the current price at press time is an all-time high of $3585 on Coindesk’s Bitcoin Price Index (BPI).

We’re going to go over some of the particular successes Bitcoin has had over the past year, as well as many of the big hurdles it has had to overcome, in order to give you a better view of what the future might hold for the popular cryptocurrency.

January 2017

bpi aug 11 1The first hiccup faced by Bitcoin enthusiasts came in January 2017, after briefly rising to near all-time-high prices during its most impressive run since 2013. On January 5th, the average price of a Bitcoin across most trading platforms sharply fell around $200 in one hour. This specific price drop was speculated to be linked to rumors of increased regulation on the digital currency by the Central Bank of China, and the free fall continued for a full week.

March 2017

bpi aug11 2

The next hurdle in our incredible story of Bitcoin over the past year is still fresh in the memory of many Bitcoin traders and enthusiasts. After hitting record highs, and even surpassing the price of gold for the first time ever, an unfavorable decision by the SEC regarding the eligibility of  a Winklevoss Bitcoin Trust to be traded on the stock exchange put the entire future of Bitcoin at risk. But this is not what caused the rapid loss in value of nearly $300 in just 3 days. The cause of this hurdle came from within the Bitcoin community itself (along with more rumors of Chinese regulations), as Bitcoin miners and thought-leaders debated over complicated software and tech issues.

Shortly after the decision by the SEC rejecting the Winklevoss proposal, it was reported that the SEC had issued a statement agreeing to review their decision.

April-May 2017

bpi aug11 3

As a new law was passed in early April in Japan categorizing Bitcoin as a legal payment option within the country, demand for the currency began to steadily rise — the price followed. Increased Japanese and Russian demands are responsible for the rise we see from early April to May 25th, when the price of the cryptocurrency dropped sharply in order to correct itself. This reminded traders and enthusiasts how volatile the market can be.

June 2017

bpi aug11 4

On June 15 Bitcoin underwent a significant market correction. Dropping nearly $700 in about a week, this was one of the most significant corrections to date. In a great article written by Joseph Young, it is explained that Bitcoin markets seem to be cyclical, climbing and then sharply dropping, but reliably climbing to back to its previous peak and beyond.

July 2017

bpi aug11 5.png

Confusion and uncertainty plagued the month of July as miners, traders and enthusiasts speculated over the impending bitcoin split (hard fork). As a general consensus was reached, confidence returned to the community and Bitcoin returned to previous price levels, though many were still unsure how the split was going to happen or what it might mean for the future. Volatility persisted until the split happened in early August.

August 2017

bpi aug11 6

On August 1st the hard fork happened and Bitcoin split into two separate cryptocurrencies. Nobody knew what was going to happen, but many expected some short term downward pressure on bitcoin prices. The exact opposite happened as Bitcoin began to sore to new all-time highs and continue its upward trend over the past year.

Time will tell if the popular digital currency will continue to hike, though analysts have indicated a major upswell in confidence and a broad consensus that the upward march of bitcoin’s price could continue.

Click here to learn how to buy Bitcoin with SolidTrust Pay

If you aren’t comfortable investing your own money, there are plenty of ways you can earn some around the web. Check out our comprehensive guide for earning free Bitcoin online to get started!