With the inception of TokenGX's FreedomX platform, and the associated exemptions provided by the Ontario Securities Commission, there is now clear evidence that Canadian securities regulators are at least willing to explore the concept of secondary market trading in securities in cryptographic or digital form. While FreedomX's exemptions permit a relatively narrow version of secondary market trading (with many restrictions and guidelines), if this pilot project is successful, it could usher in a legislative regime whereby FreedomX (or platform's such as FreedomX) achieve regulatory recognition as a securities marketplace capable of (and permitted to) clear and settle trades in cryptographic securities. Every journey starts with a single step and we, at Fasken, will be watching this pilot project with interest.
Fasken has extensive experience in advising companies with Blockchain as their core technology and token issuers on all aspects of corporate finance and securities regulatory matters.
Fasken's client, Dapper Labs Inc., was the first token issuer in Canada to receive a "no action" letter from a Canadian securities regulator with respect to their CryptoKitties project, and Fasken is proud to have advised Dapper Labs Inc. on corporate finance and securities regulatory matters with respect to the CryptoKitties project.
The Ontario Securities Commission approved ground-breaking exemptive relief for TokenGX to launch and operate FreedomX, a secondary trading marketplace for security tokens issued by Issuers on the TokenFunder platform. FreedomX will be powered by TokenFunder’s leading edge blockchain technology. All participating investors will finally be able to buy and sell private market securities directly between themselves.