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.
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.
Navigate to your Deposit Money Area by clicking My Money -> Deposit Funds within your account and choose the “Bitcoin/Altcoins” option.
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 Funds.
Carefully read the details of your transaction, including the fees and total amount you will receive, then press the CONFIRM Transaction button.
Choose the coin you wish to use for your deposit from the dropdown menu (in the examples below, we chose Ether).
Enter your altcoin address, click Pay with Ether and press Continue!
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:
SolidTrust Pay has been offering Bitcoin services for over 3 years, allowing users to easily turn bitcoin into their preferred currency and back again since the early days of the blockchain-based cryptocurrency. Many members use SolidTrust Pay exclusively to buy or sell bitcoin because we offer competitive rates and we’re known for our high levels of security and reliability. Additionally, SolidTrust Pay is one of the most functional online platforms in terms of money deposits, transfers, exchanges, purchases and withdrawals, giving users a multitude of options for buying or selling bitcoin.
SolidTrust Pay is pleased to announce that it is now free for merchants to upgrade their business accounts to accept bitcoin. This means merchants and business account holders can now apply completely free and offer their customers one more option to easily make payments for website purchases at the press of a button using bitcoin!
We’re excited to make this option easier for our merchants to take advantage of. Here are just a few of the benefits to having a Bitcoin payment button on your business/ecommerce website:
- More options for your customers: the more ways you offer people to pay for your products or services, the more people will do so! Offer them as many options as possible.
- More exposure and visibility: the Bitcoin community is tight-knit. When a business begins to offer the option to pay in bitcoin, word tends to travel fast!
- Simple and seamless integration: since payments made via a Bitcoin payment button will be applied to your STPay account as USD, there is no time wasted with extra steps for exchanging the currency and withdrawing those funds.
If you already have a merchant account with us, you can apply for a Bitcoin payment button by selecting the “Accept Bitcoins” option in your Merchant Section. If you don’t have a merchant account, what are you waiting for? Sign up and start accepting bitcoin payments now!
Weary of putting your credit card information on the internet? Tired of paying a percentage fee for large deposits? Looking for the safest and most reliable method for transferring or spending money online?
SolidTrust Pay is excited to announce that we’ve partnered up with MegaTransfer to provide a new deposit method with an incredibly low fee! Using the MegaTransfer Bank Wire option, you can now deposit up to $10,000 for a flat rate of $20. We expect this option to be helpful to our merchants and business account holders who run their companies through their STPay accounts, for our web-based professionals who use their accounts to invest and earn online, and forour everyday users who just want to fund their STPay wallet to go shopping!
Please note that this deposit method is not available to users inside the USA, Iran or North Korea. Also note that the following deposit limits apply:
CARD VERIFIED: $2500
STANDARD VERIFIED: $5000
BANK VERIFIED: $10000
For those who are planning to try out this option but aren’t quite sure how, you’re in luck! Below we will detail exactly how to go about making a MegaTransfer Bank Wire deposit, with graphics to help.
- Sign into your account and go to My Money –> Deposit Funds.
- Choose the “Bank” deposit option.
- Choose your currency and transaction amount.
- One you have chosen these, the option for Wire Payment via MegaTransfer will appear.
- NOTE: If you are trying to deposit in a currency that is unsupported, or from an account that is within the US, Iran or North Korea, you will not have the option to use this deposit method.
- Confirm your transaction.
- Confirm again that your transaction is correct.
- Enter your name and email address.
- Click “Proceed” and you’re done!
Please allow one to three (1 – 3) business days for your funds to appear in your account (depending on your bank’s transaction time-frames — the fund will appear in your account as soon as we receive them).
If you have any other questions about our new deposit method or MegaTransfer and SolidTrust Pay’s partnership, don’t hesitate to reach out to us on Social Media via our Facebook or Twitter page, and please contact our customer support team via live chat or ticket for any payment, deposit or account-related issues!