The following discussion provides a general description of blockchain and distributed ledger technologies (DLT) and the current state of the regulatory landscape in Ontario.
To date, the Ontario Securities Commission has not explicitly categorized a blockchain token or coin (which are further discussed below) as an investment contract or other type of security under section 1(1) of the Securities Act (Ontario) (the OSA), but did issue a press release on March 7, 2017, advising market participants that products or other assets that are tracked and traded as part of a distributed ledger may qualify as securities, even if they do not represent shares of a company or similar ownership interests. A business’ specific use of DLT may trigger Ontario securities law requirements, including the need to be registered or to file a prospectus. Any business that is operating or planning to operate a DLT-based venture should consider the nature of … Continue reading “The future of securities regulation of distributed ledger technologies”
"Not there yet": Bank of Canada experiments with blockchain wholesale payment system
The Bank of Canada embarked on Project Jasper to learn more about the feasibility, benefits and challenges of using DLT as the basis for a wholesale interbank payment system. These systems are crucial mechanisms for the financial industry that allow large financial institutions to process payments to each other as well as to and from central banks.
Blockchain and privacy: Transparency and innovation pose challenges for data protection
A blockchain is a peer network of nodes that use a distributed ledger that can be used to track transactions involving value including money, votes, property, etc. The most well-known application of blockchain technology is bitcoin. Transactions on a blockchain are not regulated by any central counterparty: the individuals involved in a given transaction provide their information (including personal information), a record is created that can be verified by nodes in the network. In this sense, the users forming the community act as their own regulators.