CSA provide additional guidance on securities law implications for offerings of tokens
Jun 11, 2018
On June 11, 2018, the Canadian Securities Administrators (CSA) published CSA Staff Notice 46-308 “Securities Law Implications for Offerings of Tokens,” which provides additional guidance on the applicability of securities laws to offerings of coins or tokens, including ones that are commonly referred to as “utility tokens.”
CSA Staff Notice 46-308 outlines specific situations that may have an implication on the presence of one or more of the elements of an investment contract in the context of an offering of coins or tokens.
This notice supplements the CSA’s August 2017 publication of CSA Staff Notice 46-307 Cryptocurrency Offerings, which outlines how securities law requirements may apply to initial coin offerings, initial token offerings, cryptocurrency investment funds and the cryptocurrency platforms trading these products.
Any business planning to raise capital through an offering of coins or tokens should consider whether it involves the distribution of a security.
Review the press release on the CSA's website and the Staff Notice on the member's website.
