Canadian Exchange, CoinLaunch, Reaches a Settlement with Ontario Securities Commission (OSC)
The securities regulator in Ontario announced a settlement with Coin Launch following allegations of illegally trading securities masked as crypto on June 22nd. The public hearing on the settlement will happen two days later.
OSC reaches a settlement with Coin Launch Corp. (Image: Shutterstock)
Nairobi, Kenya – 23RD July 2019
In an official press statement, the Ontario Securities Commission announced they have reached a settlement with Canadian-based exchange Coin Launch Corp earlier on Monday. The exchange will however need to face a public hearing later this week on July 24th to determine public’s view on the settlement between Coin Launch Corp and staff of the Commission.
The Commission accuses the Coin Launch Corp. team of offering securities without proper registration process with regulatory authority. In the material period (March 2018 to September 2018) the company launched a series of services in the cryptocurrency market without proper registration process.
This further branched out to Coin Launch’s team trading securities and offering crypto related services including; assisting companies offer security tokens, taking offerings on road shows, planning and consulting on all key aspects of a crowd sale campaign, and marketing securities offerings through marketing campaigns. All these were completed in the six month period without registration with OSC.
The statement further mentions two tokens that Coin Launch helped set up and market to its consumers despite them being classified as securities – Buggyra Coin Zero token (“BCZERO”) and the EcoRealEstate token (“ECOREAL”).
The cryptocurrency firm further facilitated the creation and deployment of tokens on the ERC-20 protocol, providing marketing and promotional material such as whitepapers, introducing cryptocurrency issuance to exchanges for potential listing and offering advice to the token issuers on their offerings.
“CoinLaunch engaged in and held itself out as engaging in the business of trading in securities, without registration under Ontario securities law and where no exemption from the registration requirement was available.” – statement from the Ontario Securities Commission (OSC)
Regulation across the globe is taking heat following the rampant creation of security tokens and digital assets. While the cryptocurrency industry has received a warm welcome in the country, some traditional institutions such as the Royal Bank of Canada remain skeptical on the field leading to additional regulatory stances.
The country’s top financial regulator, FinTRAC, announced a new wave of crypto regulations to come in the coming year.