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Regulator supports firms’ cryptocurrency plans

The Ontario Securities Commission (OSC) is pledging its support to firms who are planning to launch their cryptocurrency offerings.

In a statement released on its Twitter page, the OSC said it is keen to support innovations such as cryptocurrency offerings, which it deemed to have the potential to change the way financial services are offered to Canadians.

“We need to be prepared for this new asset class and way of doing business. At the same time, we must balance the demand for new ways to raise capital and invest with the need to protect investors from high-risk or fraudulent activities,” the regulator said.

OSC published a detailed guidance with its Canadian Securities Administrators (CSA) counterparts for businesses considering launching their own coin offerings. The regulator said its approach is consistent with that of other international regulators such as the US Securities and Exchange Commission, the Monetary Authority of Singapore, and the United Kingdom’s Financial Conduct Authority.

OSC encourages firms to reach out to its LaunchPad team if their offering involves a security to discuss the appropriate approaches and compliance with the securities law. “We are willing to sit down with any business that has questions about this area and regularly host information days for the fintech community on topics such as cryptocurrency offerings,” the regulator stressed.