Securities Commission Gives TokenFunder ICO the Green Light

Securities regulators in Ontario have given their blessing to an initial coin offering from TokenFunder, which is now set to launch at the start of November.

TokenFunder, a startup developing a platform for other firms to launch their own ICOs, was given the all-clear by local regulators at the Ontario Securities Commission this week, ahead of the launch of their token.

Their ICO is expected to raise in the order of $10 million from private investors, and on its launch will become the first ICO to receive formal permission from the Ontario Securities Commission.

While the TokenFunder launch is not the first ICO to emerge from Canada, it will be the first to be granted regulatory approval in Ontario, a major milestone in the development of the local market.

The development comes just a matter of months after the commission issued a statement echoing calls from other regulators, specifying that some ICOs will require oversight and regulation like other forms of securities.

Speaking on the approval process, the Ontario Securities Commission said that it would continue to offer support to those looking to launch ICOs within the parameters of the relevant laws and regulations.

“It is important that we continue to foster innovative new ways to raise capital and invest, and this announcement is a testament to the dedicated support we are providing in this space.”

TokenFunder is to regard its own ICO and its tokens as a form of security, bringing the firm into line with the regulator’s expectations. This marks a departure from most previous ICOs, where firms have sought to distance themselves from creating tokens that look like simple alternatives to shares.

The TokenFunder launch will join a similar move from Impakt Finance, based in Quebec, becoming only the second regulated ICO to launch in Canada to date.

With increasing pressure from regulators around the world, and growing scrutiny of the ICO space, it is expected that more ICOs in future will follow similar lines, seeking the prior approval of regulators to ensure legal compliance.

The token sale is scheduled to get underway on November 1, and analysts locally will be closely monitoring the results to see whether the TokenFunder ICO realizes its early promise.