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CoinLaunch Agreed to Pay $50,000 Settlement Fine for The Ontario Securities Commission

| 30-Th7-2019
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CoinLaunch – the end-to-end ICO services provider – has reportedly reached a $50,000 settlement with the Ontario Securities Commission (OSC), as announced via the department’s website.

As revealed by Evan Thomas – an ex-developer and currently a commercial litigator – CoinLaunch has offered consulting services for 2 establishments, BCZERO – a Czech off-road truck racing team ICO – along with ECOREAL – a Portugal-based resort ICO. Both ICOs are classified as securities.

CoinLaunch has reportedly been in charge of designing the tokens, white papers and websites, along with providing expertise for the sale structure and made introductions, crypto exchanges for listings included.

As stated by Thomas, the OSC noted that the service was an attempt, made to further security tokens trading, as it is an instrument used to facilitate solicitation of investors. CoinLaunch has agreed to pay $50,000 as a settlement fine.

The regulator reportedly claimed that the proposed amount of fine though seemed small, but ultimately appropriate, as CoinLaunch did not fully known the specific registration requirements, but has shown good cooperation with the regulator and made remedial efforts.

“Although regulators cracking down on ICOs have tended to focus on issuers, the big lesson here is that securities laws can apply to activities beyond issuing tokens, including activities that don’t involve buying or selling tokens.”

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