Securities and investment laws i Applicability of Canadian securities laws to virtual currencies Virtual currencies may be subject to Canadian provincial securities laws to the extent that a virtual currency is considered a security or a derivative for the purposes of those laws, such as the Securities Act (Ontario) (the Securities Act). [...] This position appears to have been accepted by the CSA, an umbrella organisation of Canada's provincial and territorial securities regulators, and the IIROC in the joint consultation paper seeking input on various considerations relating to the potential regulation of virtual currencies.3 The CSA and IIROC have also acknowledged that it is widely accepted that some of the well-established virtual. [...] the stated purpose of the offering is to raise capital, which will be used to perform key actions that will support the value of the token or the issuer's business; 4. [...] the token may be reasonably expected to trade on a trading platform or otherwise be tradeable in the secondary market.6 A particular virtual currency that meets the criteria of the Pacific Coin test or has certain of the characteristics described in the CSA guidance discussed above may be properly considered an investment contract and therefore a security, subject to Canadian securities laws. [...] there is immediate transfer of ownership, possession and control of the cryptoasset and the user is free to use, or otherwise deal with, the cryptoasset without any further involvement with, or reliance on the platform or its affiliates, and the platform or any affiliate retaining any security interest or any other legal right to the cryptoasset; and .
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