In a landmark move, the British Columbia Securities Commission (BCSC) has granted the first registration of an investment fund manager in Canada solely dedicated to cryptocurrency investments.
The BCSC has granted crypto investment firm First Block Capital registration as an investment fund manager and an exempt market dealer in order to operate a bitcoin investment fund. The regulator said that the conditions of registrations imposed on the company were so crafted as to ensure that it could operate under the existing regulatory framework, and give tools to the BCSC to evaluate the identified risks of this innovative fund type.
"Cryptocurrency investments are a new and novel form of investing in Canada. We have seen from the market and from investors that there is a strong appetite for access to these kinds of investments," said Zach Masum, Manager, Legal Services, Capital Markets Regulation, and leader of the BCSC's Tech Team. "This first registration allows access to bitcoin investments, while providing the BCSC with unique mechanisms to monitor operations in a rapidly developing area."
With this, First Block Capital is also now registered as an investment fund manager and exempt market dealer in Ontario; the BCSC is its principal regulator. Founded in 2017, the company aims to provide investment exposure to the emerging digital currency asset class based on blockchain technology.
First Block Capital in July announced the launch of the Canadian Bitcoin Trust, accessible through FrontFundr, which would provide eligible investors with a convenient way to invest in Bitcoin.
Earlier this year, the BCSC launched a Tech Team to help B.C.-based fintech and technology companies understand their securities regulatory requirements. The Tech Team is actively involved with the Canadian Securities Administrators' Regulatory Sandbox Initiative, which supports fintech businesses seeking to offer innovative products, services and applications in Canada.
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