OSC approves crypto-backed lending | Investment Executive
According to the ruling, the company sought approval to operate a “novel platform” that would allow both individuals and businesses to apply for loans (denominated in either Canadian or U.S. dollars), and to post either bitcoin or ether as collateral for those loans.
That collateral will be held by the company in special purpose vehicles (SPVs) for the duration of the loan, with terms ranging from three months to five years.
The Canadian regulators have said that these kinds of arrangements may fall under securities law on the basis that “a borrower’s contractual rights relating to the crypto asset collateral and related rights under the borrower’s agreement,” may meet the definition of a security.
The…
