Published on September 17th, 2017 | by bitcoin0
confirm tokens may secuites
The list of jurisdictions that are silent on the question of whether blockchain tokens may be securities has grown smaller.
In addition, the notice helps to clarify which tokens may be considered securities for the purposes of Canadian securities legislation.
In Canada, the leading case for determining whether an investment contract exists is the Supreme Court of Canada’s decision in Pacific Coast Coin Exchange v. Ontario (Securities Commission) (“Pacific Coin”).
The four-pronged test announced by Pacific Coin is arguably based on the Howey test that exists under U.S. law.
If a given token or coin is deemed to be a security under the Pacific Coin test, the applicable cryptocurrency offering for such token or coin may be classified as a trade in securities, in which case, Canadian securities laws would apply to the transaction.