Category Archives: Blockchain, Crypto, ICOs

Canadian Exchanges to Report Transactions Over $10k per Proposed Regulations

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Bitcoin.com | Avi Mizrahi | Jun 11, 2018

Canadian bitcoin investors and cryptocurrency traders are going to be subjected to an increased level of market surveillance soon if the government has its way. Once the proposed regulations are implemented, every transaction above $10,000 CAD will have to be reported.

Crypto Exchanges to Report as MSBs

The Department of Finance Canada has issued a Regulatory Impact Analysis Statement regarding proposed amendments to the country’s AML/ATF regime. The statement suggests that Canadian crypto exchanges will be treated as money service businesses (MSBs) and will have to report trades over a certain amount.

According to the proposed amendments published in the Canada Gazette, “Persons and entities that are ‘dealing in virtual currency’ would be financial entities or other entities deemed domestic or foreign MSBs, as the case may be. These ‘dealing in’ activities include virtual currency exchange services and value transfer services. As required of all MSBs, persons and entities dealing in virtual currencies would need to implement a full compliance program and register with FINTRAC. In addition, all reporting entities that receive $10,000 or more in virtual currency (e.g. deposits, any form of payment) would have record-keeping and reporting obligations.”

See:  Canada Seeks to Widen AML Compliance Net

 

Financial Action Task Force (FATF) Standards

The part about registering with FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada) should not be too much of a hassle for the exchanges. Several Canadian exchanges have already taken it upon themselves to voluntarily do so in an effort to remedy regulatory uncertainty, as we recently reported. And the government concluded that compliance with the proposed rules should cost just $270,112 over a ten-year period.

Continue to the full article --> here

 

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Bitcoin.com | Avi Mizrahi | Jun 11, 2018 Canadian bitcoin investors and cryptocurrency traders are going to be subjected to an increased level of market surveillance soon if the government has its way. Once the proposed regulations are implemented, every transaction above $10,000 CAD will have to be reported. Crypto Exchanges to Report as MSBs The Department of Finance Canada has issued a Regulatory Impact Analysis Statement regarding proposed amendments to the country’s AML/ATF regime. The statement suggests that Canadian crypto exchanges will be treated as money service businesses (MSBs) and will have to report trades over a certain amount. According to the proposed amendments published in the Canada Gazette, “Persons and entities that are ‘dealing in virtual currency’ would be financial entities or other entities deemed domestic or foreign MSBs, as the case may be. These ‘dealing in’ activities include virtual currency exchange services and value transfer services. As required of all MSBs, persons and entities dealing in virtual currencies would need to implement a full compliance program and register with FINTRAC. In addition, all reporting entities that receive $10,000 or more in virtual currency (e.g. deposits, any form of payment) would have record-keeping and reporting obligations.” See:  Canada ...
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Canadian Exchanges to Report Transactions Over $10k per Proposed Regulations
Crowdfund Insider | JD Alois | Jun 14, 2018 Ethereum rose dramatically today following the comments of William Hinman, Director of the Division of Corporate Finance at the Securities and Exchange Commission (SEC), who inserted a statement in a speech today that ended the question of Ethereum being a security. Hinman told an audience at Yahoo Finance in San Francisco; “And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.” The reassuring comments not only helped Ethereum, but other cryptocurrencies followed higher in its wake. CoinList co-founder and President Andy Bromberg commented on the news from the SEC that it doesn’t consider Ether or Bitcoin – for that matter, a security: “The SEC’s recent comments are a validation of the possibility of non-securities tokens and a big step towards more definitive guidance on how and when individual tokens can be defined as non-securities. The precedent they are indicating here is a powerful one that will enable new projects to continue to flourish in the space.” Of course, the comments by the SEC ...
Read More
Ethereum Rises on Positive Comments by the SEC
IT Business | Bret Conkin | June 12, 2018 Real estate and fintech have been integrating in exciting new ways in recent years. Real estate online investment or crowdfunding has been a sector that has attracted significant interest in the U.S. over the last several years, with more than 100 portals launched to serve rapidly growing developer and investor interest. In fact, industry research hub crowdsourcing.org estimates that the industry will be worth more than $300 billion USD by 2025. Why would developers consider an online and alternative financing route? A big reason, beyond the capital, is the significant marketing benefits that campaigns can generate, including community building. Check out:  GAME-CHANGERS: Crowdfunding real estate projects in the GTA To investigate where the Canadian market for real estate crowdfunding is going in the next 12 months, we interviewed the two leading portals in Canada, online investment platform NexusCrowd and private equity firm R2 (though R2 notes that they position themselves as an online marketplace or fintech in commercial real estate, not as “crowdfunders”). Learn more below. Bret Conkin: How many projects and capital were raised via your portal in 2017? To date in 2018? Amar Nijar, CEO of R2 Capital & ...
Read More
Real estate crowdfunding in Canada: portal insights for 2017/18
Baer & Karrer | By Daniel Flühmann and Peter Hsu | May 23, 2018 The Fintech Landscape 1.1 Please describe the types of fintech businesses that are active in your jurisdiction and any notable fintech innovation trends of the past year within particular sub-sectors (e.g. payments, asset management, peer-to-peer lending or investment, insurance and blockchain applications). The Swiss fintech landscape has evolved significantly over the past few years and Switzerland continues to be an attractive base for innovators in the financial sector. Approximately 200 active companies in various sub-sectors form the core of the diverse Swiss fintech ecosystem. The total number of fintech-related businesses, however, is much higher. Many established financial institutions and other established financial market players have entered the fintech space in the recent past and, as a result, the distinction between fintech and traditional financial services has become increasingly blurred. Swiss-based fintech businesses include robo-advisory and social trading services, crowdfunding and crowdlending platforms as well as payment systems and businesses active in the area of collective investment schemes. One of the key focus areas in the past year has been driven by blockchain-based businesses, in particular in the areas of cryptocurrencies and decentralised transaction platforms (e.g. Ethereum ...
Read More
Comprehensive Overview of Fintech in Switzerland H1 2018
CSA | Staff Notice 46-308 | June 11, 2018 Montréal – The Canadian Securities Administrators (CSA) today published CSA Staff Notice 46-308 Securities Law Implications for Offerings of Tokens, which provides additional guidance on the applicability of securities laws to offerings of coins or tokens, including ones that are commonly referred to as “utility tokens.” “Since publishing initial guidance, we have engaged with numerous businesses considering token offerings and have found that most of these offerings involve securities,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “Our notice sets out additional guidance based on situations we have seen to date and common inquiries we have received from businesses and their advisors.” CSA Staff Notice 46-308 outlines specific situations that may have an implication on the presence of one or more of the elements of an investment contract in the context of an offering of coins or tokens. This notice supplements the CSA’s August 2017 publication of CSA Staff Notice 46-307 Cryptocurrency Offerings, which outlines how securities law requirements may apply to initial coin offerings, initial token offerings, cryptocurrency investment funds and the cryptocurrency platforms trading these products. See:  State and Provincial Securities Regulators Conduct Coordinated International ...
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Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens
Canadian Innovation Exchange | Peter Jones | June 8, 2018 NCFA Canada is a proud Community Partner of CIX, Canada's most curated startup investment conference. Invited attendees are founders of Canada's most innovative early- and growth-stage tech companies and global investors and corporates. CIX takes place over two days, Oct 22-23, 2018, in downtown Toronto. The 11th annual CIX Top 20 program is now open for submissions. The CIX Top 20 program is Canada's largest national showcase of the nation's hottest and most innovative tech companies. CIX Selection Committee evaluates all submissions and selects 20 to present at CIX, taking place on October 22 & 23 in Toronto. Register online and use code KICKOFFCIX by Friday, July 20th, or reach out to Joel Pinto at jpinto@brunico.com for further registration inquiries Visit the CIX website --> now The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding ...
Read More
Conference Toronto (Oct 22-23):  11th Annual Canadian Innovation Exchange (CIX)
Race Tech Development Group | Dean Jessop | Jun 8, 2018 Nikola Tesla Unite is new to the cryptocurrency market, but cryptocurrency is not new in the minds of the founders. Working for many years to bring the concept and idea to market, NIKO Coin is set to be one of the major players in not only digital currency, but also business-to-business programs through their partnership with Alianza Motorsports. “This is a true partnership,” explained Alianza Motorsports’ Lorne Kelly. “We are working together both on and off the track. NIKO Coin promotion is being done on the side of our racecar, race hauler and with trackside functions and displays while we all work hand in hand to educate fellow teams, drivers and racing enthusiasts on the advantages and benefits of using digital currency. We have had several meetings with suppliers, other team partners, series and organizations on how we can help them get in on the ground floor of the digital currency market all with the help of NIKO Coin.” With a digital wallet offered by NIKO Coin and that can be downloaded from the Google Play Store, NIKO Coin can now connect with a wider demographic of users. See:  ...
Read More
Nikola Tesla Unite to use Alianza Motorsports to Educate Race Fans on Crypto
Grow VC Group | Jouko Ahvenainen | Jun 2018 Data and AI started to come fundamental components for FinTech in 2017. There are several reasons for this development, for example, the development of machine learning and data analytics solutions, growth of FinTech services to have enough data, and new cloud based infrastructures that make it easier to use data. We can expect this development continues and accelerates in 2018. At the same time, blockchain, distributed finance models and increasing privacy concerns will change data requirements and models. Data is coming a fundamental enabling component in the finance services, and it will give also more power to customers. Data to enable customers Everyone today knows data has a lot of value. “We try to collect all possible data, and then we find a model to monetize it, maybe sell to advertisers,” is a common sentence in many business plans. “We help companies monetize their data,” is another typical value promise. “Let’s offer our solutions for free, if we can get the data,” is a ‘sales strategy’. Is it so simple that you offer software, apps, and services to consumers and companies, utilize their data and create a big business? It really ...
Read More
The world's new oil and AI's imminent impact on the future of Fintech
VentureBeat | Khari Johnson | Jun 7, 2018 It’s no exaggeration to call Element AI one of the top startups in the world right now. With the help of deep learning pioneer Yoshua Bengio, the company is making AI-powered products for the enterprise. And from its beginning in October 2016, Element AI has broken the rules of what to expect from a startup. In December 2016, Element AI was the very first company to receive funding from Microsoft Ventures. Six months later, the company raised a $102 million series A round. Element AI has yet to release a single publicly available product, but the company is already working with customers, has opened offices in Singapore, South Korea, Toronto, and London, and already plays an advisory role to startups that receive funding from the Global AI Fund in South Korea. At the creative tech conference C2 in Montreal last month, VentureBeat sat down with CEO Jean-François Gagné to talk about challenges enterprise customers face in implementing AI, his company’s first publicly available products, and why he believes AI is allowing startups to challenge incumbent businesses in tech and finance. This interview has been edited for brevity and clarity. VentureBeat: Are there any ...
Read More
Element AI: The market is still figuring out how to share data with enterprise AI startups
CNBC | Kate Rooney | Jun 6, 2018 The head of the Securities and Exchange Commission Chairman made it clear Wednesday that the agency won't be bending the rules for cryptocurrency when it comes to defining what is or what isn't a security. "We are not going to do any violence to the traditional definition of security that has worked for a long time," SEC Chairman Jay Clayton told CNBC Wednesday. The agency is also not adjusting rules for initial coin offerings, and Clayton underlined that tokens or digital assets used in that fundraising process are securities. The head of the Securities and Exchange Commission made it clear Wednesday that the agency won't bend the rules for cryptocurrency when it comes to defining what is or what isn't a security. "We are not going to do any violence to the traditional definition of a security that has worked for a long time," U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC Wednesday. "We've been doing this a long time, there's no need to change the definition." Clayton said the U.S. has built a $19 trillion securities market that's "the envy of the world" following the current rules. See:  Don ...
Read More
SEC chief says agency won’t change securities laws to cater to cryptocurrencies

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Ethereum Rises on Positive Comments by the SEC

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Crowdfund Insider | JD Alois | Jun 14, 2018

Ethereum rose dramatically today following the comments of William Hinman, Director of the Division of Corporate Finance at the Securities and Exchange Commission (SEC), who inserted a statement in a speech today that ended the question of Ethereum being a security. Hinman told an audience at Yahoo Finance in San Francisco;

“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”

The reassuring comments not only helped Ethereum, but other cryptocurrencies followed higher in its wake.

CoinList co-founder and President Andy Bromberg commented on the news from the SEC that it doesn’t consider Ether or Bitcoin – for that matter, a security:

“The SEC’s recent comments are a validation of the possibility of non-securities tokens and a big step towards more definitive guidance on how and when individual tokens can be defined as non-securities. The precedent they are indicating here is a powerful one that will enable new projects to continue to flourish in the space.”

Of course, the comments by the SEC does not mean that Ethereum based initial coin offerings (ERC20 – ICOs) are in the clear. Most all of these offerings are more than likely securities when looking at recent comments by SEC Chair Jay Clayton. But what is encouraging is the fact that the agency is willing, and interested, in enabling crypto-innovation. Echoing comments by other staff members of the SEC, Hinman encouraged blockchain entrepreneurs to reach out to them before proceeding.

“We are happy to help promoters and their counsel work through these issues. We stand prepared to provide more formal interpretive or no-action guidance about the proper characterization of a digital asset in a proposed use. In addition, we recognize that there are numerous implications under the federal securities laws of a particular asset being considered a security...

Continue to the full article --> here

 

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Bitcoin.com | Avi Mizrahi | Jun 11, 2018 Canadian bitcoin investors and cryptocurrency traders are going to be subjected to an increased level of market surveillance soon if the government has its way. Once the proposed regulations are implemented, every transaction above $10,000 CAD will have to be reported. Crypto Exchanges to Report as MSBs The Department of Finance Canada has issued a Regulatory Impact Analysis Statement regarding proposed amendments to the country’s AML/ATF regime. The statement suggests that Canadian crypto exchanges will be treated as money service businesses (MSBs) and will have to report trades over a certain amount. According to the proposed amendments published in the Canada Gazette, “Persons and entities that are ‘dealing in virtual currency’ would be financial entities or other entities deemed domestic or foreign MSBs, as the case may be. These ‘dealing in’ activities include virtual currency exchange services and value transfer services. As required of all MSBs, persons and entities dealing in virtual currencies would need to implement a full compliance program and register with FINTRAC. In addition, all reporting entities that receive $10,000 or more in virtual currency (e.g. deposits, any form of payment) would have record-keeping and reporting obligations.” See:  Canada ...
Read More
Canadian Exchanges to Report Transactions Over $10k per Proposed Regulations
Crowdfund Insider | JD Alois | Jun 14, 2018 Ethereum rose dramatically today following the comments of William Hinman, Director of the Division of Corporate Finance at the Securities and Exchange Commission (SEC), who inserted a statement in a speech today that ended the question of Ethereum being a security. Hinman told an audience at Yahoo Finance in San Francisco; “And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.” The reassuring comments not only helped Ethereum, but other cryptocurrencies followed higher in its wake. CoinList co-founder and President Andy Bromberg commented on the news from the SEC that it doesn’t consider Ether or Bitcoin – for that matter, a security: “The SEC’s recent comments are a validation of the possibility of non-securities tokens and a big step towards more definitive guidance on how and when individual tokens can be defined as non-securities. The precedent they are indicating here is a powerful one that will enable new projects to continue to flourish in the space.” Of course, the comments by the SEC ...
Read More
Ethereum Rises on Positive Comments by the SEC
IT Business | Bret Conkin | June 12, 2018 Real estate and fintech have been integrating in exciting new ways in recent years. Real estate online investment or crowdfunding has been a sector that has attracted significant interest in the U.S. over the last several years, with more than 100 portals launched to serve rapidly growing developer and investor interest. In fact, industry research hub crowdsourcing.org estimates that the industry will be worth more than $300 billion USD by 2025. Why would developers consider an online and alternative financing route? A big reason, beyond the capital, is the significant marketing benefits that campaigns can generate, including community building. Check out:  GAME-CHANGERS: Crowdfunding real estate projects in the GTA To investigate where the Canadian market for real estate crowdfunding is going in the next 12 months, we interviewed the two leading portals in Canada, online investment platform NexusCrowd and private equity firm R2 (though R2 notes that they position themselves as an online marketplace or fintech in commercial real estate, not as “crowdfunders”). Learn more below. Bret Conkin: How many projects and capital were raised via your portal in 2017? To date in 2018? Amar Nijar, CEO of R2 Capital & ...
Read More
Real estate crowdfunding in Canada: portal insights for 2017/18
Baer & Karrer | By Daniel Flühmann and Peter Hsu | May 23, 2018 The Fintech Landscape 1.1 Please describe the types of fintech businesses that are active in your jurisdiction and any notable fintech innovation trends of the past year within particular sub-sectors (e.g. payments, asset management, peer-to-peer lending or investment, insurance and blockchain applications). The Swiss fintech landscape has evolved significantly over the past few years and Switzerland continues to be an attractive base for innovators in the financial sector. Approximately 200 active companies in various sub-sectors form the core of the diverse Swiss fintech ecosystem. The total number of fintech-related businesses, however, is much higher. Many established financial institutions and other established financial market players have entered the fintech space in the recent past and, as a result, the distinction between fintech and traditional financial services has become increasingly blurred. Swiss-based fintech businesses include robo-advisory and social trading services, crowdfunding and crowdlending platforms as well as payment systems and businesses active in the area of collective investment schemes. One of the key focus areas in the past year has been driven by blockchain-based businesses, in particular in the areas of cryptocurrencies and decentralised transaction platforms (e.g. Ethereum ...
Read More
Comprehensive Overview of Fintech in Switzerland H1 2018
CSA | Staff Notice 46-308 | June 11, 2018 Montréal – The Canadian Securities Administrators (CSA) today published CSA Staff Notice 46-308 Securities Law Implications for Offerings of Tokens, which provides additional guidance on the applicability of securities laws to offerings of coins or tokens, including ones that are commonly referred to as “utility tokens.” “Since publishing initial guidance, we have engaged with numerous businesses considering token offerings and have found that most of these offerings involve securities,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “Our notice sets out additional guidance based on situations we have seen to date and common inquiries we have received from businesses and their advisors.” CSA Staff Notice 46-308 outlines specific situations that may have an implication on the presence of one or more of the elements of an investment contract in the context of an offering of coins or tokens. This notice supplements the CSA’s August 2017 publication of CSA Staff Notice 46-307 Cryptocurrency Offerings, which outlines how securities law requirements may apply to initial coin offerings, initial token offerings, cryptocurrency investment funds and the cryptocurrency platforms trading these products. See:  State and Provincial Securities Regulators Conduct Coordinated International ...
Read More
Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens
Canadian Innovation Exchange | Peter Jones | June 8, 2018 NCFA Canada is a proud Community Partner of CIX, Canada's most curated startup investment conference. Invited attendees are founders of Canada's most innovative early- and growth-stage tech companies and global investors and corporates. CIX takes place over two days, Oct 22-23, 2018, in downtown Toronto. The 11th annual CIX Top 20 program is now open for submissions. The CIX Top 20 program is Canada's largest national showcase of the nation's hottest and most innovative tech companies. CIX Selection Committee evaluates all submissions and selects 20 to present at CIX, taking place on October 22 & 23 in Toronto. Register online and use code KICKOFFCIX by Friday, July 20th, or reach out to Joel Pinto at jpinto@brunico.com for further registration inquiries Visit the CIX website --> now The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding ...
Read More
Conference Toronto (Oct 22-23):  11th Annual Canadian Innovation Exchange (CIX)
Race Tech Development Group | Dean Jessop | Jun 8, 2018 Nikola Tesla Unite is new to the cryptocurrency market, but cryptocurrency is not new in the minds of the founders. Working for many years to bring the concept and idea to market, NIKO Coin is set to be one of the major players in not only digital currency, but also business-to-business programs through their partnership with Alianza Motorsports. “This is a true partnership,” explained Alianza Motorsports’ Lorne Kelly. “We are working together both on and off the track. NIKO Coin promotion is being done on the side of our racecar, race hauler and with trackside functions and displays while we all work hand in hand to educate fellow teams, drivers and racing enthusiasts on the advantages and benefits of using digital currency. We have had several meetings with suppliers, other team partners, series and organizations on how we can help them get in on the ground floor of the digital currency market all with the help of NIKO Coin.” With a digital wallet offered by NIKO Coin and that can be downloaded from the Google Play Store, NIKO Coin can now connect with a wider demographic of users. See:  ...
Read More
Nikola Tesla Unite to use Alianza Motorsports to Educate Race Fans on Crypto
Grow VC Group | Jouko Ahvenainen | Jun 2018 Data and AI started to come fundamental components for FinTech in 2017. There are several reasons for this development, for example, the development of machine learning and data analytics solutions, growth of FinTech services to have enough data, and new cloud based infrastructures that make it easier to use data. We can expect this development continues and accelerates in 2018. At the same time, blockchain, distributed finance models and increasing privacy concerns will change data requirements and models. Data is coming a fundamental enabling component in the finance services, and it will give also more power to customers. Data to enable customers Everyone today knows data has a lot of value. “We try to collect all possible data, and then we find a model to monetize it, maybe sell to advertisers,” is a common sentence in many business plans. “We help companies monetize their data,” is another typical value promise. “Let’s offer our solutions for free, if we can get the data,” is a ‘sales strategy’. Is it so simple that you offer software, apps, and services to consumers and companies, utilize their data and create a big business? It really ...
Read More
The world's new oil and AI's imminent impact on the future of Fintech
VentureBeat | Khari Johnson | Jun 7, 2018 It’s no exaggeration to call Element AI one of the top startups in the world right now. With the help of deep learning pioneer Yoshua Bengio, the company is making AI-powered products for the enterprise. And from its beginning in October 2016, Element AI has broken the rules of what to expect from a startup. In December 2016, Element AI was the very first company to receive funding from Microsoft Ventures. Six months later, the company raised a $102 million series A round. Element AI has yet to release a single publicly available product, but the company is already working with customers, has opened offices in Singapore, South Korea, Toronto, and London, and already plays an advisory role to startups that receive funding from the Global AI Fund in South Korea. At the creative tech conference C2 in Montreal last month, VentureBeat sat down with CEO Jean-François Gagné to talk about challenges enterprise customers face in implementing AI, his company’s first publicly available products, and why he believes AI is allowing startups to challenge incumbent businesses in tech and finance. This interview has been edited for brevity and clarity. VentureBeat: Are there any ...
Read More
Element AI: The market is still figuring out how to share data with enterprise AI startups
CNBC | Kate Rooney | Jun 6, 2018 The head of the Securities and Exchange Commission Chairman made it clear Wednesday that the agency won't be bending the rules for cryptocurrency when it comes to defining what is or what isn't a security. "We are not going to do any violence to the traditional definition of security that has worked for a long time," SEC Chairman Jay Clayton told CNBC Wednesday. The agency is also not adjusting rules for initial coin offerings, and Clayton underlined that tokens or digital assets used in that fundraising process are securities. The head of the Securities and Exchange Commission made it clear Wednesday that the agency won't bend the rules for cryptocurrency when it comes to defining what is or what isn't a security. "We are not going to do any violence to the traditional definition of a security that has worked for a long time," U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC Wednesday. "We've been doing this a long time, there's no need to change the definition." Clayton said the U.S. has built a $19 trillion securities market that's "the envy of the world" following the current rules. See:  Don ...
Read More
SEC chief says agency won’t change securities laws to cater to cryptocurrencies

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens

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CSA | Staff Notice 46-308 | June 11, 2018

Montréal  The Canadian Securities Administrators (CSA) today published CSA Staff Notice 46-308 Securities Law Implications for Offerings of Tokens, which provides additional guidance on the applicability of securities laws to offerings of coins or tokens, including ones that are commonly referred to as “utility tokens.”

“Since publishing initial guidance, we have engaged with numerous businesses considering token offerings and have found that most of these offerings involve securities,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “Our notice sets out additional guidance based on situations we have seen to date and common inquiries we have received from businesses and their advisors.”

CSA Staff Notice 46-308 outlines specific situations that may have an implication on the presence of one or more of the elements of an investment contract in the context of an offering of coins or tokens.

This notice supplements the CSA’s August 2017 publication of CSA Staff Notice 46-307 Cryptocurrency Offerings, which outlines how securities law requirements may apply to initial coin offerings, initial token offerings, cryptocurrency investment funds and the cryptocurrency platforms trading these products.

See: 

Any business planning to raise capital through an offering of coins or tokens should consider whether it involves the distribution of a security. In order to avoid costly regulatory surprises, businesses are encouraged to consult qualified securities legal counsel about the potential application of, and possible approaches required to comply with, securities legislation. Businesses should also contact their local securities regulatory authority to discuss possible flexible approaches to complying with securities laws, including time-limited exemptive relief.

The CSA Regulatory Sandbox is an initiative of the CSA to support financial technology (fintech) businesses seeking to offer innovative products, services and applications in Canada. The CSA has granted, through the CSA Regulatory Sandbox, exemptive relief from certain securities law requirements to firms in the context of offerings of coins or tokens that involve the distribution of securities, subject to conditions to ensure adequate investor protection.

CSA staff monitor cryptocurrency offerings activity and will continue to take action against businesses that do not comply with securities laws.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

Source:  Security law implications for Offerings of Tokens

Download CSA Staff Notice 46-308 --> here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Share

Nikola Tesla Unite to use Alianza Motorsports to Educate Race Fans on Crypto

Share

Race Tech Development Group | Dean Jessop | Jun 8, 2018

Nikola Tesla Unite is new to the cryptocurrency market, but cryptocurrency is not new in the minds of the founders. Working for many years to bring the concept and idea to market, NIKO Coin is set to be one of the major players in not only digital currency, but also business-to-business programs through their partnership with Alianza Motorsports.

“This is a true partnership,” explained Alianza Motorsports’ Lorne Kelly. “We are working together both on and off the track.

NIKO Coin promotion is being done on the side of our racecar, race hauler and with trackside functions and displays while we all work hand in hand to educate fellow teams, drivers and racing enthusiasts on the advantages and benefits of using digital currency.

We have had several meetings with suppliers, other team partners, series and organizations on how we can help them get in on the ground floor of the digital currency market all with the help of NIKO Coin.”

With a digital wallet offered by NIKO Coin and that can be downloaded from the Google Play Store, NIKO Coin can now connect with a wider demographic of users.

See:  Highlights from FFCON18: VELOCITY – Blockchain, Cryptocurrency, Alternative Investing Conference (March 5-6, Toronto)

Kelly continued, “With NIKO Coin, the general public can conduct peer-to-peer transactions and trade cryptocurrency at local NIKO Coin outlets. The whole idea seems futuristic but the writing is on the wall and we are definitely headed to a more digital society. Alianza Motorsports is happy to have this connection to cryptocurrency and we are excited to help bring it to the world of motorsports.”

“Our mission is to facilitate fundamental change in societal interactions while having a significant impact on many of the ways our world functions by building solutions that will have a profound impact on how global society interacts,” explained Dean Jessop of Nikola Tesla Unite. “

Our values of community, decentralization, and inclusion are all closely and deeply aligned with our belief in the forthcoming digital economy. A future where the people and technology will be a part of a fully liquid system open to everyone. Our group is advancing this state of technology and pushing it forward through innovative development. We are building solutions that will have a profound impact on how global society interacts. Leveraging a top-tier network of global providers, we are building an ecosystem more robust and far-reaching than anything to date.”

While the next on track action is still six weeks away, Alianza Motorsports continues to prepare for their home event at the Canadian Tire Motorsports Park. Taking on the Mobil 1 SportsCar Grand Prix during the July 6-8 weekend, this will be the home event for team driver Anthony Simone and provide the perfect backdrop for NIKO Coin to educate potential users of cryptocurrency.

For more information on Nikola Tesla Unite and the NIKO brand of cryptocurrency, please contact Jane Anderson at 1.833.TESLA 56 or via e-mail to Media@NIKO.eco. To visit them online, please visit www.NIKO.eco. or www.nikolateslaunite.com.

Photos: Alianza Motorsports

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

 

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SEC chief says agency won’t change securities laws to cater to cryptocurrencies

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CNBC | | Jun 6, 2018

  • The head of the Securities and Exchange Commission Chairman made it clear Wednesday that the agency won't be bending the rules for cryptocurrency when it comes to defining what is or what isn't a security.
  • "We are not going to do any violence to the traditional definition of security that has worked for a long time," SEC Chairman Jay Clayton told CNBC Wednesday.
  • The agency is also not adjusting rules for initial coin offerings, and Clayton underlined that tokens or digital assets used in that fundraising process are securities.

The head of the Securities and Exchange Commission made it clear Wednesday that the agency won't bend the rules for cryptocurrency when it comes to defining what is or what isn't a security.

"We are not going to do any violence to the traditional definition of a security that has worked for a long time," U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC Wednesday. "We've been doing this a long time, there's no need to change the definition."

Clayton said the U.S. has built a $19 trillion securities market that's "the envy of the world" following the current rules.

See:  Don Tapscott urges ‘sensible’ cryptocurrency regulations

The agency is not adjusting rules for the fundraising process known as initial coin offerings, or ICOs, either, he said. ICOs have raised $9.1 billion this year alone, according to the latest research from Autonomous Next.

"If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules," Clayton said "If you want to do any IPO with a token, come see us."

The SEC is "happy to help you do that public offering" if issuers take the responsibility SEC laws require, he said.

The chairman also addressed a growing debate over which cryptocurrencies should fall under SEC jurisdiction.

"Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin," Clayton said. "That type of currency is not a security."

A token, or a digital assets used in a fundraising process known as an initial coin offering, or ICO, are securities by Clayton's definition.

"A token, a digital asset, where I give you my money and you go off and make a venture, and in return for giving you my money I say 'you can get a return' that is a security and we regulate that," Clayton said. "We regulate the offering of that security and regulate the trading of that security."

Whether an asset is a security right now follows the "Howey Test." The ruling comes from a 1946 U.S. Supreme Court case that classifies a security as an investment of money in a common enterprise, in which the investor expects profits primarily from others' efforts.

Clayton made it clear in March that all ICOs constitute securities, and reiterated that Wednesday saying "if it's a security, we're regulating it."

But companies tied to those cryptocurrencies have argued that some should be fall under a different category, in many cases because of their utility.

The financial watchdog has been balancing consumer protection and innovation in what has become multi-billion dollar cryptocurrency market. The market capitalization of bitcoin alone is more than $130 billion, according to CoinMarketCap.

On Tuesday, the SEC picked a new leader for its emerging cryptocurrency division. Valerie Szczepanik, who already worked at the agency, was promoted to a role that didn't exist until this week: Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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University of Waterloo joins Ripple’s $64 million CAD blockchain research initiative

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Betakit | | Jun 6,2018

The University of Waterloo announced that it is one of 17 universities joining San Francisco-based Ripple’s University Blockchain Research Initiative.

The University Blockchain Research Initiative is a collaboration between Ripple, which specializes in digital payments and blockchain, and major universities from around the world to supportƒ academic research, technical development, and innovation in blockchain, cryptography, and digital payments systems. The University of Waterloo, which is the only Canadian university participating in the initiative, said participating institutions will determine their own research topics and areas of focus.

According to a blog post, Ripple is committing $64 million CAD ($50 million USD) to support the universities conducting the research. The company will also provide universities with strategic guidance and technical resources.

“We know from recent world events and the experience of many of our partners that blockchain technologies will increasingly disrupt the way the world does business.”

See:  Canadian governments must double-down to foster tech boom here, end brain drain to U.S.

“We know from recent world events and the experience of many of our partners that blockchain technologies will increasingly disrupt the way the world does business,” said Pearl Sullivan, dean of the faculty of engineering at Waterloo. “By increasing our ability to attract talent to Waterloo and work in conjunction with some of the world’s leading institutions, we will make a significant contribution to Canada and the world’s ability to address the challenges and opportunities that blockchain and cryptography technologies present.”

Ripple said participating universities will have the opportunity to partner with Ripple to collaborate on research and technical development to stimulate blockchain innovation, create a new curriculum to meet the demand for students to learn about FinTech, and to stimulate ideas and dialogue among students, faculties, and technologists.

“Academia has traditionally been a critical driver of technical innovation,” said Eric van Miltenburg, senior vice president of global operations at Ripple. “This project is an acknowledgment of the vital importance of the unique role universities will play in advancing our understanding and application of cryptography and blockchain technology. It also speaks to the reality that university graduates will fuel a continually evolving and maturing financial marketplace and workforce.”

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry.  Join Canada's Fintech & Funding Community today FREE!  Or become a contributing member and get perks. For more information, please visit:  www.ncfacanada.org

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Traders With Pockets Full of Crypto Quit Wall Street

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Bloomberg | | May 30, 2018

Asim Ahmad. Source: Asim Ahmad

Millennials who made money trading digital assets in their spare time are breaking away from top firms.

Whether cryptocurrencies and the technology that powers them will reshape the financial system remains to be seen. What’s not in doubt is their ability to transform the career paths of bright young minds on Wall Street.

Adrian Xinli Zhang was climbing the ranks at Deutsche Bank AG in New York when he discovered Bitcoin. The 29-year-old made enough money trading digital currencies in his spare time to leave the German bank in March, the same month he was promoted to director, people familiar with the matter said.

At Goldman Sachs Group Inc., Jonathan Cheesman, 36, and Justin Saslaw, 28, are among at least three front-office employees in New York who quit the bank this year after making personal profits from cryptocurrencies, said people with knowledge of the situation, asking not to be identified. In London, Asim Ahmad pocketed enough from investing his savings in Ether to walk away from BlackRock Inc.

“I’m in a position where it doesn’t make sense to work at BlackRock anymore,” said Ahmad, who advised pension funds on investments in alternative assets and hedge funds while at the world’s largest asset manager. “The one-day volatility of my portfolio is higher than my salary, so if I get a few investments right then I’ll have made the same as my yearly wage and everything else on top is a bonus.”

Officials for BlackRock, Deutsche Bank and Goldman Sachs declined to comment on their employees’ investments or their departures.

While the Wall Street establishment debates whether cryptocurrencies will become a profit center or a legal liability, some employees have gotten wealthy enough from personal investments in digital assets to turn their backs on promising jobs at top firms. A small but growing group of finance professionals has built up a big enough financial cushion to eschew the safety net of a monthly salary.

Instead of heading to the beach or squandering their trading proceeds on luxurious living, some of the new digitally-moneyed have become such ardent believers in the power of blockchain, the technology behind Bitcoin and other digital assets, that they’re starting their own businesses. Ahmad says he now helps run a fund that invests in blockchain ventures with a positive social or environmental impact. Zhang is working on a trading platform for digital assets, according to a person familiar with the matter.

Zhang, formerly a trader on the centralized risk desk at Deutsche Bank, started investing in cryptocurrencies in his spare time last year and has traded more than $1 million worth of the assets, the person familiar said. He exchanged tips and trading ideas with colleagues, including Yao King, head of program trading and exchange-traded fund trading for the Americas, who also made sizable personal profits from crypto trading, said people familiar.

Aside from just buying and selling coins, some seek to profit from inefficiencies in the market, such as the variance in the price of Bitcoin on different exchanges and the difference in pricing for futures contracts of varying expiration dates. When the first Bitcoin futures started trading on a Sunday evening in December, King stayed up all night and at one point his trades accounted for a third of all open interest in the March Bitcoin future, according to people familiar with the matter.

When Ahmad first came across Ether in 2016, the same year he joined BlackRock in London, he invested all the savings he had available from six years working for an investment consultancy in Northern England, or 10,000 pounds ($13,250). While declining to say how much money he made from his investments, which included participation in initial coin offerings, he said Ether cost about $10 when he invested. It now trades above $500 and cost more than $1,400 earlier in the year.

More:  Could Cryptocurrency Be the Investment Opportunity of a Lifetime?

“If you start mentally spending this money it will hurt you when it falls,” said Ahmad, who quit BlackRock in March. “If you enjoyed the volatility on the way up you have to accept it falls as hard if not harder at times.”

It’s not only financial professionals who saw the extreme volatility and immature market infrastructure of cryptocurrencies as a money-making opportunity. Scammers and criminals have also targeted the market, prompting regulators from China to the U.S. to scrutinize digital assets.

Authorities worry virtual currencies are susceptible to fraud because exchanges are not actively pursuing cheaters, wild price swings make it easy to push valuations around and digital assets aren’t currently subject to regulations like those that govern stocks and bonds. The Justice Department has opened a criminal probe into whether traders are manipulating prices, while the Securities and Exchange Commission is investigating initial coin offerings.

“You’ve seen a bifurcation internally at many larger houses where senior managers are very skeptical about crypto, while graduates and younger team members are very positive,” said Grimsley. “The youngsters may have less intellectual baggage and may be more open-minded, but they also have less responsibility for managing risk and working out the practicalities of bolting on crypto to the existing business.”

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry.  Join Canada's Fintech & Funding Community today FREE!  Or become a contributing member and get perks. For more information, please visit:  www.ncfacanada.org

 

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