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Globe says OSC settles initial coin offering lawsuit

2019-07-23 09:27 ET - In the News

The Globe and Mail reports in its Tuesday edition that the Ontario Securities Commission has reached a settlement with cryptocurrency consulting company CoinLaunch Corp. over allegations that the firm traded securities without being registered to do so. The Globe's Alexandra Posadzki writes that terms of the settlement have not been released, but will be read out at a hearing in Toronto on Wednesday. The regulatory action is the latest in a string of crackdowns by Ontario's securities regulator on companies involved in initial coin offerings, or ICOs. The emerging form of fundraising, similar to crowdfunding, allows companies to finance a new venture through the sale of virtual tokens or coins. Regulators, including the OSC, have argued that many such offerings have the characteristics of securities, and that selling them without making required disclosures, or trading them without being registered with the commission, constitute violations of the province's securities laws. The OSC alleges that last year Oakville-based CoinLaunch advertised a package of marketing and promotional services aimed at helping others launch new token offerings. The services offered included helping companies solicit investors.

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