Welcome to Canada, Bitcoin: Regulators Approve First Bitcoin Fund Manager
Canada’s first Bitcoin fund manager has been duly registered and approved by regulators
The British Columbia Securities Commission (BCSC) has approved First Block Capital Inc.’s first Bitcoin registration.
The Vancouver-based financial institution aims to be a registered fund manager and a market dealer to duly operate and circulate a Bitcoin investment fund in Ontario, Canada and British Columbia.
Canada has been consistently one of the few countries that embrace Blockchain and its potentials.
While other countries threaten to brand ICOs and cryptocurrencies as illegal, Canada has been exploring other possible ways to best regulate and embrace other potential use cases of the technology to improve its public services.
Cryptocurrency investments welcome in Canada
According to Zach Masum, manager of legal services, capital markets regulation, and leader of the BCSC Tech Team, the cryptocurrency investments are gaining attention in Canada as it is new and a novel form of investing in the country.
The company’s first registration will allow access to a secure and protected Bitcoin investments. Thus, a BCSC implemented mechanisms for its operations should be ruled and followed.
The BCSC has been prepared since January of 2017. They were able to build a Tech Team that will supervise such studies, operations and transactions. This is an initiative for companies to duly understand all necessary securities regulatory requirements.
Riskier than traditional assets management
Cryptocurrency is risky when compared to traditional management of assets – bank deposits, time share and the like. Yet, the utilization of digitalization has equipped Bitcoin and other cryptocurrencies to be in demand and facilitate conversion and safekeeping of assets.
In line with First Block Capital Inc., registered Bitcoin operations, they initially launched a Canadian Bitcoin Trust in July 2017. The said release aims to give accredited investors exposure to the rates and Bitcoin price. So, they can get confidence in investing to cryptocurrencies.
Thus, the firm is also following registration conditions to normally operate without undoubted trusts.