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Last week’s updates:

Canada embraces principles-based regulation.

The Canadian Securities Administrators, an organization made up of every securities regulator from each province and territory, has announced the launch of a regulatory sandbox initiative aimed at “ facilitat[ing] the ability of those businesses to use innovative products, services and applications all across Canada, while ensuring appropriate investor protection,”. The press release explicitly mentions “cryptocurrency or distributed ledger technology based ventures” as eligible business models. Although Ontario’s Security Commission already has such an initiative already in place called the LaunchPad, this announcement looks like a push to get all securities regulators to adopt the same principles-based approach. This can pave the way for startups trying to leverage blockchain technologies to enable disruptive financial services like private equity crowdfunding and other alternative investment platforms. Blockchain startups have often boldly pushed the legal limits but have tried to reduce risks by setting up shop in fintech friendly jurisdictions like Switzerland. This is what the Ethereum Foundation did for their ICO crowdsale after being initially based out of Toronto. This initiative is likely an attempt to try and keep fintech startups within Canada.

Blockchain for the back-end — why else would I use it?

Came across a short-doc that interviews a number of individuals and companies that are studying blockchain technologies. Again, as discussed before in this newsletter, these financial firms see blockchain technologies as a sustaining innovation that can improve their back-end financial settlement and clearing processes. A report that has come out today echoes a similar sentiment as they focus exclusively on the application of blockchain technologies in market infrastructure. There is little mention of what this technology can do, or rather, has enabled others to do, that has never been made possible before. A growing market of crypto-users speculating on a new asset class (Bitcoin, Ether, ICO tokens) that live outside of the financial industry does not seem to interest (or scare) banks just yet.

Bitcoin on a bull run.

Bitcoin has reached new all-time highs last week with some exchanges peaking at $1,222 per bitcoin. It will be interesting to see if traders will still be so bullish as we get closer to March 11th which is the date when the SEC will give their decision on the Winklevii’s Bitcoin ETF. Analysts have suggested the chances of the ruling going through is slim but would have a huge impact on the price if it does go through.

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