The legal status of Bitcoin and other cryptocurrencies in Canada has been clarified. Canadian Securities Administrators, a regulatory authority responsible for coordinating the relationship of regional securities laws, has issued a guideline on the issue of cryptos for Canada.
If an ICO or ITO falls within the scope of securities law, the promoters of the coin or token have to either file a prospectus with regulators, or have an exemption from the prospectus requirement. The Whitepapers of projects alone may not fully comply with securities law and are not always deemed sufficient.
“Although white papers are a form of disclosure document for investors, it is important to note that they are often not structured in the same way as prospectuses or (offering memorandums). Investors must be provided with a document that complies with the requirements of securities laws,” the CSA says.
The CSA notice also discusses both cryptocurrency exchanges and investment funds. The exchanges raise several questions, such as whether they should be recognized as marketplaces by local regulators. Cryptocurrency investment funds also need determine whether they are subject to Canadian securities laws, and if they are, ensure that its portfolio holdings comply with the appropriate laws.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.