In a ground-breaking move, the Autorite des marches financiers (AMF), Quebec’s financial institutions regulator, has accepted a token sale by Impak Finance (Impak) into its regulatory sandbox despite determining that the tokens on offer are securities. Impak is building a platform for investing in socially responsible enterprises powered by ‘Impak Coins’ and will be the first regulated ICO based in Canada.
The AMF has provided Impak with relief from certain securities requirements such as needing to provide investors with a prospectus and having to register as a securities dealer. Impak will be allowed to remain in the sandbox for two years, after which stakeholders will decide how to proceed. AMF has flagged that it would consider extending the relief on a permanent basis or implementing permanent regulatory amendments to change regulations to permit such offers.
The approach of AMF is aligned with the CSA’s notice on ICOs as discussed above. Importantly, Impak will be allowed to make offers across Canada’s other provinces and territories via the Canadian securities passport system.