Share this article
Ontario Securities Regulator Issues Warning About ICOs
Ontario's securities market watchdog has issued a warning to businesses using blockchain tech: you may run afoul of our laws.
Updated Sep 11, 2021, 1:08 p.m. Published Mar 9, 2017, 6:52 p.m.
Ontario's securities market watchdog has issued a warning to businesses using blockchain: you may run afoul of our laws.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
, the Ontario Securities Commission (OSC) said on 8th March that the province's laws may apply in some cases, advising companies that use or are looking to utilize the tech to get in touch with the regulator if they have any doubts.
The OSC made specific references to initial coin offerings, or ICOs, through which companies or individuals can issue and sell blockchain-based tokens in order to fund or bootstrap a new project. The model's supporters say that it represents a wholly new mechanism for entrepreneurs to access capital, while critics argue that it fuels excessive speculation and fraudulent behavior.
According to the OSC, an ICO could fall under its jurisdiction even if the tokens themselves don't signify an ownership stake in a particular business.
The agency said:
"Products or other assets that are tracked and traded as part of a distributed ledger may be securities, even if they do not represent shares of a company or ownership of an entity. Businesses' specific use of [distributed ledger technology] may trigger Ontario securities law requirements, including the need to be registered or file a prospectus."
The OSC said that it plans to engage in more dialogue with industry stakeholders in order to prevent businesses from unknowingly violating its statutes.
"Because this is a novel area, businesses may not be aware that some uses of this technology could trigger securities law requirements. We encourage these businesses to speak with us about securities law and investor protection requirements that may apply," said Pat Chaukos, chief of OSC LaunchPad, the agency's fintech-focused outfit.
The warning closely follows an OSC-hosted hackathon at which a number of blockchain-focused startups developed concepts based around the concept of regulatory technology. Notably, one of the top-placing startups developed a solution for categorizing information related to ICOS through which regulators can obtain data.
Image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bitcoin drifts lower as $81.3k emerges as the market’s key fault line: Asia Morning Briefing
With large caps still tracking bitcoin and high-beta assets already weakened, Glassnode’s True Market Mean has become the line investors are watching most closely.
What to know:
- Bitcoin's True Market Mean at $81.3k is a critical level, with potential market-wide implications if breached.
- Large-cap crypto assets remain closely correlated with bitcoin, reinforcing its role as the market's anchor.
- Gold prices have surged to record highs, driven by central bank buying and geopolitical risks, with forecasts suggesting further increases.
Top Stories
