CoinLaunch, a Initial coin offering (ICO) consultant agrees to pay $50,000 to the Ontario Securities Commission (OSC) as per a published documents on the regulator’s website dated July 24.
Evan Thomas, a commercial litigator and former programmer stated that CoinLaunch was consulted on two ICOs, BCZERO (raising funds for a Czech off-road truck racing team) and ECOREAL (raising funds for a Portuguese resort), both of which were found to be securities. Reportedly, CoinLaunch created the tokens and their white papers and websites, further, advised on the sale structure and made introductions, including to crypto exchanges for listings.
As per Thomas, the OSC observed that such services were to further the trade of the security tokens since it was instrumental to the solicitation of investors. A $50,000 fine has been agreed upon under the said settlement. The regulator called the imposed penalty modest though appropriate as CoinLaunch wasn’t aware of the registration requirements and cooperated with the regulator and took remedial steps.
Thomas went on note that the startup deleted the private keys, granting access to the tokens it received as compensation. He also commented:
“Although regulators cracking down on ICOs have tended to focus on issuers, the big lesson here is that securities laws can apply to activities beyond issuing tokens, including activities that don’t involve buying or selling tokens.”
The United States Securities and Exchange Commission sued Canadian startup Kik in June for an unregistered $100 million token offering.
Read more:Infamous BTC-e Crypto Exchange Indicted For Fraud
Image Source – Pixabay.com
Bitcoin 
Ethereum 
Bitcoin Cash 
Tether 
Binance Coin