CoinLaunch is set to pay a $50,000 fine as part of its settlement with the Ontario Securities Commission (OSC). Details of the agreement were recently shared on the finance regulator’s official website.
Evan Thomas on the Topic
Evan Thomas, a programmer, and commercial litigator, explained that the initial coin offering (ICO) consultant was brought in to consult on two ICOs – the ECOREAL and BCZERO. The former was trying to drum up financial support for a Portuguese resort while the latter was fundraising for a Czech off-road racing team. Both of the projects involved securities.
CoinLaunch allegedly developed the websites, white papers, and tokens for the two organizations. The company also advised them on the sales framework and made introductions to the right groups, including cryptocurrency exchange platforms for listings.
Thomas added that the OSC concluded that the service CoinLaunch provided acted as a means to further security tokens trading as it assisted in attracting investors. Because of this, CoinLaunch agreed to a $50,000 penalty.
Small Fine Because of Corrective Steps
The OSC noted that the fine levied on CoinLaunch was relatively small but fitting since the consulting company wasn’t aware of the registration conditions, it worked with the regulator and took corrective steps.
Thomas also pointed out that the company erased the private keys allowing access to the tokens it was given as compensation. He also emphasized that while regulators tend to target issuers when constraining ICOs, people should remember that securities law also applies to actions that go beyond releasing tokens. It can also involve activities unrelated to selling or purchasing tokens.