Regulator says it does not set a precedent
A proposed initial coin offering (ICO) by a Toronto-based company has been given the go-ahead by the provincial securities regulator, marking a landmark for Ontario.
TokenFunder will be able to proceed with its plan for the offering by way of a private placement under the offering memorandum prospectus exemption-relief subject to certain conditions.
The Ontario Securities Commission (OSC) announced its decision Monday and said that TokenFunder’s application falls within the Canadian Securities Administrators’ Sandbox which allows firms to obtain exemptions from securities regulations which may hamper their innovative business models, as long as investor protection is not compromised.
The ICO will offer up to 200 million Ethereum blockchain FNDR tokens from its total creation of one billion.
The hope is to raise around $10 million to fund its smart token asset management platform which will enable third-party issuers to raise capital using tokens and coins.
Investors who are not ‘eligible investors’ or ‘accredited investors’ will be limited to a $2,500 investment in the ICO and the firm is required to carry out a ‘know your client’ and suitability review for each investor.
TokenFunder also intends to offer management and governance services to third-party blockchain securities issuers, subject to regulatory approval.
The ICO will begin on November 1, 2017 according to the TokenFunder website and the OSC relief will run for 12 months.
The OSC has stressed that the decision made on this occasion should “not necessarily be viewed as a precedent for other applicants in the jurisdictions of Canada.”
TokenFunder will be able to proceed with its plan for the offering by way of a private placement under the offering memorandum prospectus exemption-relief subject to certain conditions.
The Ontario Securities Commission (OSC) announced its decision Monday and said that TokenFunder’s application falls within the Canadian Securities Administrators’ Sandbox which allows firms to obtain exemptions from securities regulations which may hamper their innovative business models, as long as investor protection is not compromised.
The ICO will offer up to 200 million Ethereum blockchain FNDR tokens from its total creation of one billion.
The hope is to raise around $10 million to fund its smart token asset management platform which will enable third-party issuers to raise capital using tokens and coins.
Investors who are not ‘eligible investors’ or ‘accredited investors’ will be limited to a $2,500 investment in the ICO and the firm is required to carry out a ‘know your client’ and suitability review for each investor.
TokenFunder also intends to offer management and governance services to third-party blockchain securities issuers, subject to regulatory approval.
The ICO will begin on November 1, 2017 according to the TokenFunder website and the OSC relief will run for 12 months.
The OSC has stressed that the decision made on this occasion should “not necessarily be viewed as a precedent for other applicants in the jurisdictions of Canada.”
