The Ontario Securities Commission (OSC) and cryptocurrency company CoinLaunch Corp has finally arrived at a settlement agreement.
Statement by OSC
An official statement by the OSC revealed that there will be a settlement hearing on July 24 to decide whether the settlement best serves public interest. The hearing will be open to the public.
Canada’s securities watchdog had previously leveled several allegations against CoinLaunch. According to the OSC, the crypto firm offered several crypto-backed services, including securities trading.
In particular, the OSC claimed that CoinLaunch proposed to market and advance token subscriptions, along with security tokens, without complying with the Commission’s registration requirements.
Securities Law Violation
Because of this, CoinLaunch reportedly violated the country’s securities law. OSC’s senior litigation counsel, Katrina Gustafson, wrote that the company engaged in securities trading without registering under Ontario’s securities law. She added that there were no exceptions when it comes to registration requirements.
The OSC statement stated that CoinLaunch offered their services to the firms issuing ECOREAL and BCZERO tokens. The two tokens are considered securities via investment contracts.
CoinLaunch allegedly managed an ERC-20 smart contract system as well. The platform was said to have supported users’ capacity to develop and release tokens on the Ethereum system.
The allegations statement also said that CoinLaunch had submitted its intention to discontinue in Canada.
Canada Still Open to Adapting the Technology
Regardless of CoinLaunch’s future in Canada, the country appears to be open to adapting the technology. There have been reports that the Canadian Securities Regulatory Agency (CSRA) had inserted an entry on cryptocurrency assets inside the country’s business roadmap for 2019-2022. The agency is reportedly keen on coming up with requirements for cryptocurrency custodians and ways to manage funding rounds for blockchain-connected securities.