By Grant Ferowich
The Ontario Securities Commission (OSC) gave Token Funder Inc. the go-ahead to raise money through an ICO on Monday.
Token Funder seeks to crowdsource a hard-cap of $10 million for approximately 20 percent of the company’s tokens.
“We are pleased to announce that we just approved the first token offering out of Ontario,” the OSC said October 23.
Token Funder received a temporary exemption from certain legal requirements under a Canadian legal instrument intended to support fintech shops.
The company basically wants ICOs to adhere to proper corporate governance and use Token Funder’s professional services to make sure that happens. In other words, the government approved an ICO for a company that intends to make ICOs less sketchy in the future. If there’s ever been an ICO that looks like it will make the cryptocurrency world more credible and legit, Token Funder just might be the one.
The company will issue about 200 million FDNR tokens during the ICO. The company says the new capital will facilitate development of the smart token asset management platform, STAMP, and fund “ongoing working capital needs.”
The terms of the regulatory relief granted to Token Funder state:
- The exemption only lasts one year.
- The company has to “conduct know-your-client and a suitability review for each investor in the Offering,” according to the OSC decision,
- The capital raise must ensure “the investor has a detailed understanding of cryptocurrency and digital token offerings.”
- ICO participants must disclose “personal information and corresponding electronic verification” in order to participate in the ICO.