Recently the Canadian regulators have gone out of their way to embrace innovation and Fintech in general. This past week, the Ontario Securities Commission (OSC) published a decision on the application of Token Funder to launch an Initial Coin Offering (ICO) and the tokenized security was approved.
The decision was made in the context of the regulatory sandbox the Canadians have created. The decision states;
“In the context of the CSA Sandbox, the Filer submitted its business model and subsequently filed an application to be exempted from the dealer registration requirement. This Decision should not be viewed as a precedent for other filers.
The principal regulator in the Jurisdiction has received an application from the Filer for a decision under the securities legislation of the Jurisdiction of the principal regulator (the “Legislation”) for exemptive relief pursuant to National Policy 11-203 – Process for Exemptive Relief Applications in Multiple Jurisdictions (“NP 11-203”) from the dealer registration requirement in the Legislation (the “Registration Relief”).”
Token Funder has created a “smart token asset management platform” or STAMP to facilitate blockchain based securities being crowdfunded. To quote; STAMP intends to, among other things, provide token and coin management and governance services for issuers and, subject to any regulatory approvals and/or exemptive relief required, provide for certain transferability of tokens and coins to ensure that a particular token or coin can achieve the access or use function for which it has been principally created.”
So this is a big deal for Canada.
The ICO will involve the distribution of up to 200,000,000 of the 1,000,000,000 FNDR Tokens for total gross proceeds of up to approximately CAD $10,000,000.
Token Finder is the creation of Alan Wunsche who has long been active in the world of traditional finance working for companies like ScotiaBank. Wunsche launched Token Finder in 2016 as a “better way to invest in the companies of tomorrow.” Well, now he will have his chance to prove this claim.
The Token Sale kicks off on November 1st.
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