Great analysis of the Canadian Securities Administrators new guidance on ICOs and securities by @Osler_Law. Summary:

- Most ICOs/SAFT (utility tokens) are securities
- Same approach as SEC
- No new regs: existing secutiries rules apply
- Enforcement coming

Read comments below👇
"Most token offerings are subject to Canadian securities laws and that regulators will continue to take enforcement action against projects and businesses that engage in token offerings without complying with applicable securities laws"

BTC maximalists who remained untainted 😎
- regulators are monitoring the crypto-asset space
- understand commonly used token offering models (...) adopted to minimize Canadian securities laws.
- SAFTs, air drops from foreign jurisdictions
- nonetheless be subject to Canadian securities laws

Can't hide from mounties!
Canadian regulators have a history of following US counterparts for close coordination. Read between lines: howey test.

CSA over-emphasizes on expectation as profit as determinant in qualifying securities. Bitcoin hodlers have expectation of profit, still not a security.
Here's the juicy stuff: what the CSA believes is a determinant of "investment contract".

- intent to create platform not yet not launched
- token not immediately delivered
- tokens for promoters
- premine/founder rewards

My opinoin: in Canada, #Ethereum is a security
This has got to be the most brutal one: if you have extraordinary claims about your token but can't back them up with evidence, and you're selling it to the public: it's an investment contract.

That's basically all altcoins and ICOs... harsh!
Really weird policy regarding finite vs. infinite amount. They think that if the token has unlimited supply, indicator it is not an investment contract (and also reverse). Is it political move or b/c nobody would be expect profit from unlimited supply?
Key definitions:

A token can be an investment contract and NOT a security.

A token can be both a security and an investment contract.

Tokens delivered after a SAFT, even if they are utility tokens, can be securities.
Final tweet: juristidiction and enforcement.

Jurisdiction may apply outside of Canada if the transaction “real and substantial connection” link to Canada.

Past token offerings do not get an exemption.
Ok here's more. Here are some screenshots from the actual CSA documents:

This is how they define an investment contract
Forgot the source, blasphemy!

Here you go: osler.com/en/resources/r…

Great job again @Osler_Law !

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