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Crypto Canada: From ETFs to ICOs, Visiting the Country of Wolverine and Vitalik

The comedians are very used to make fun of Canada, reminding neighbors as peaceful simpletons, with the south park as a major example. However, even if you ignore that Wolverine, the toughest of all the X-Men, is Canadian, you should revise this worn-out cliche, considering how this realm of the Commonwealth seems to march to a faster pace than the United States in the race for cryptocurrency adoption.
While the U.S. Securities and Exchange Commission’s (SEC) recent requests seem to delay the possibility of encompassing regulation with regard to introducing a Bitcoin-based exchange-traded fund (ETF) in the U.S., their Canadian cousins took this landmark decision almost a year ago. In fact, the British Columbia securities commission was granted the possibility of the registration of the bitcoin investment fund for September 2017, for the first time, the first company will accept the after reaching the fund .it became recently listed as registered as registered pension savings ( RPS) and a tax savings account ( tfsa ).
Other financial vehicles were involved to make a good Canadian Fintech Scene. For instance, there is the Blockchain Technologies ETF (HBLK), a fund based on the Harvest Blockchain Index, a portfolio which tracks the performance of some of the leading public companies with business activities focused on blockchain activities in North America. More recently, other funds pegged to the performance of indexes based on stock issued by blockchain companies such as Coincapital STOXX, Blockchain Patents Innovation Index Fund (LDGR) and the Coincapital STOXX B.R.AI.N. Index Fund (THNK) appeared on the Toronto Stock Exchange. The current funds are promoted by Coin Investment Management, recently created by Coinsquare. The pioneers, First Block Capital is working on new vehicles, announced under the names of FBC Active Blockchain Opportunities ETF and FBC Cryptocurrency Index Fund.
If an ETF could be considered the holy grail in terms of legitimizing digital assets within the regulated financial system, and therefore news about them is often more eye-catching, then Canada has demonstrated that it has many other crypto-arrows in its quiver.
Decentralized techs have been in the Canadian landscape for many years. You may have forgotten nationality heroes as Wolverine, but you should remember that, even though Buterin was born near Moscow, he lived in Canda also. Since 2017, Toronto, the capital of Ontario, has also been the headquarters of the Blockchain Research Institute, but even some very well-established Canadian institutions, such as the Bank of Canada or the Competition Bureau Canada, have demonstrated a strong degree of interest and acceptance for the potential of the blockchain and of digital currencies.
The Canadian tax system too, even if not very forgiving, has been fully aware of cryptocurrencies since 2013, when the Canada Revenue Agency established its basic rules on the topic: If digital assets are held and traded as a capital asset, the possible profit is taxed as a capital gain (applied to 50 percent of the amount). If cryptocurrencies are used as a means of payment, the transaction is interpreted as a form of barter (because the two parties agree to exchange goods or services without using a legal tender), the value of which is converted in Canadian dollars and included in the seller’s income for tax purposes (depending on the Canadian province, business income taxation varies from 26.5 percent to 30 percent, and that of individuals from 44.5 percent to 58.75 percent). According to its value, mines are taxed as a result of a business profit or a personal hobby, which is when it is not taxable.
On the other side of the human institutions, nature itself seems to support Canada blockchain economy. the country is exceptionally well – given in the term of water-based energy production, and Canada – especially regions such as Quebec – enjoys the lowest electricity rate in North America. Cheap electricity drove to Quebec and is literally a rivalry between the Chinese mining giant and its local rivals.
Therefore, it’s not surprising that research published by the Bank of Canada in July 2018 indicated that Canadian citizens’ level of awareness in regard to cryptocurrencies rose from 77 percent in 2016 to 93 percent in 2017 (at least in British Columbia, the most “crypto-wise” province, according to the report). However, the same survey underlined that Bitcoin (and other crypto assets, by extension) is seen by the vast majority of the respondents as an investment, more than as a means to buy goods and services (by the way, in 2016, the majority of Canadian Bitcoin holders purchased them because they were interested in new technologies).
the path towards a real and sustainable mass adoption should pass through the creation of reliable services and new companies, using blockchain and encryption assets.
The Canadian approach to ICOs is indicated by elements such as a lightly regulated general framework, incentives for startups and innovation, and decentralization and coordination on the part of different authorities working at the federal and provincial levels.
The last point is probably the key element in terms of shaping the features of the Canadian perspective toward regulation: Canada is a federation of 10 provinces and three territories, and the Canadian Securities Administration (CSA)defines itself merely as an umbrella organization of Canada’s provincial and territorial securities regulators whose objective is to improve, coordinate and harmonize regulation. This brings a different diverse number of various legislations. It supports an outdated approach to the local market and to investors, relying on effective and light structures.
CSA put its machine in motion in February 2017, when its chair and president, Louis Morisset, announced the creation of a regulatory sandbox, an initiative aiming to provide a time-limited registration for businesses able to demonstrate themselves truly innovative and committed to ensuring appropriate investor protection, notwithstanding some other formal requirements. The eligible business models encompass cryptocurrency-related activities, crowdfunding portals, online lenders, angel investor networks, applications of artificial intelligence (AI) in trading and technological services provided to regulatory activity (RegTech).
All the applications are considered on a case-by-case basis, in a procedure managed, at least in its early stages, by the local securities regulators in order to achieve a faster and more flexible process than through a standard application process.
Resources mobilized by different local authorities could differ, following different regional authorities. Certainly, It is easy to recognize the prominence of the regulators in charge for the most populous and most economically active areas, such as the British Columbia Security Commission, Quebec’s Autorite des Marches Financiers, and the Ontario Security Commission. Visiting the website of this final commission, which is dedicated to the initiative the OSC Launchpad, you find a friendly and smart interface, and it is more than a regulatory agency as it seems.
The CSA regulations have now authorized eight applicants, among which there is one investment capital platform concentrated on startups, five in crypto investments, and two in ICOs.
The attitude of the Canadian authorities is to affirm the need to apply the fundamentals of security law (prospectus and registration) to new fintech businesses, recognizing the possibility, however, that such a new industry may require some exceptions, at least on a temporary basis.
The first Staff Notice on Cryptocurrency Offering issued by the CSA in August 2017 (SN 46-307), for instance, stated that “every ICO/ITO is unique and must be assessed on its own characteristics,” then indicating the guidelines to ensure respect for the substantial goals of the regulation process (business development and investors’ protection), even in case of exemptions from some of its formal requirements. After many months of experimentation with the sandbox, the CSA has been able to publish more precise guidelines — for instance, defining the concrete elements which classify a token as a security or a non-security (in the SN 46-308, June 11, 2018).
The calm and pragmatic CSA philosophy was also shown up in the video “BC Security Commission ” posted on youtube at the end of last year, while the world was enjoying an unstoppable rise of the cryptocurrency market. The video has an interesting number of views: little more than 5800, with only 9 likes.
in addition to the usual odd habits as shown in South Ppark , Canadians seem to be reacting smoothly toward a consistent adoption of digital finance and their economic and institutional environment.A t the same time, in the U.S., ETF proponents are still struggling with the SEC, and all the ICO movement is engulfed by a law from the 1930s preventing residents of the country with the largest number of ICO-financed projects to legally participate in any ICO. The Security Act of 1933, the document that currently shapes the main decisions about cryptocurrencies in the US, was born as a consequence of the 1929 Wall Street Crash and often seems to bring back memories of another era, which happens to be another period in which the two North American countries experienced a regulatory divide on a rather controversial topic.
Canada adopted prohibition in 1916, even before its southern neighbors ( in us , alcohol was sold by 1920).owever, the Canadian temperance laws are somewhat sensitive, allowing production, selling alcohol and consumption of alcohol or nature of alcohol. Generally, all these experiments were demonstrated to be ineffective in a very short time, and by the mid-1920s, the majority of the provinces had begun to repeal Prohibition or to modify it in regulation aimed at moderating instead of forbidding alcohol consumption. Meanwhile, prohibition, which was not merely ineffective, but sometimes harmful … – by tragedy, only until 1933 – when nearly all Canadians were drinking when he could drink. Quebec was the first province to repeal its “very moderate ” prohibition law in 1919 and Montreal became a sort of promised land for the thirsty U.S. bon vivants: Special trains crossing the borders were organized as Irving Berlin’s song Hello Montreal! was a great success.
Who knows if there are investors in the future, who will seek out a free place in which they can extinguish their thirst?

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