Ontario Securities Commission Approves Token Funder ICObr>
The Ontario Securities Commission (OSC), a regulatory agency which administers and enforces securities legislation in the Canadian province, has given the green light to Token Funder to launch an initial coin offering (ICO). The OSC’s approval will exempt Token Funder from the dealer registration requirements, and allow it to carry out an ICO under existing prospectus exemptions.
Token Funder used the Canadian Securities Administrators’ “regulatory sandbox” to receive a 12-month exemption from the requirement to register as a securities dealer. The time-limited exemption allows the company to test-drive its business model before figuring out its next steps.
In a statement about the decision, the OSC said it is important that they continue to foster innovative new ways to raise capital and invest, and that this announcement is a testament to the dedicated support they are providing in blcockchain space.
The Token Funder project aims bring blockchain innovation to the global financial market, beginning with crowdfunding. While ICOs have become a global phenomenon among the crypto-savvy, they have been largely launched in what many describe to be unregulated jurisdictions. In Canada, the OSC provides guidance to advise that tokens could trigger “securities law requirements.”
Token Funder said it was was conceived as a Canadian-based, regulatory-compliant service from the ground up. It will allow entrepreneurs and businesses of all sizes to launch their own ICO. The company’s goal is to standardize token creation and the crypto-financing process in a way that aligns groundbreaking technology with regulators’ objectives for investor protection. They’re focusing on ease of use and bringing Canadian-based investment values to crypto-finance.
The company is building an ethereum blockchain-based Smart Token Asset Management Platform (STAMP), with a vision to make it easy for businesses around the globe to use the token applications without needing to understand the technology behind it.
Token Funder chief executive Alan Wunsche said that many of the firms raising large amounts of money through ICOs don’t verify their investors’ identities and therefore don’t know where the cash is coming from.
“We believe there’s a safe way for this investment vehicle to develop,” said Wunsche. “We believe we can provide investor protections as well as innovate with the cryptocurrencies of tokens.”
The Token Funder ICO will start on November 1, selling FNDR tokens to retail investors who can then launch their own ICOs on STAMP. Token Funder will distribute up to 200 million of the 1 billion FNDR tokens for total gross proceeds of up to approximately $10 million CAD.