1. * | Inside FinTech | Global law firm | Norton Rose Fulbright

What sort of property is a cryptoasset?

There is now an emerging consensus that cryptoassets are property – judges have so held in cases in England and other jurisdictions and it is the unanimous conclusion of independent reports on the topic.

2. 10 Things You Need to Know about Blockchain

It is Not Synonymous with Bitcoins

Bitcoin is a digital currency, and the technology that underlies and supports Bitcoin is

blockchain. However, blockchain technology has functionality beyond Bitcoin.

Digital currencies, such as Bitcoin, will soon be regulated under Canadian money

Canada is already home to several blockchain start-ups, and there are Bitcoin ATMs

3. 2018 Québec Budget: Sales Taxes & Digital Economy | McCarthy Tétrault

Miners Be Aware: New GST/HST Measures Announced for Cryptoasset Mining

4. 2019 Benchmark Litigation 40 and Under Hot List | Gowling WLG

As head of Gowling WLG's Blockchain & Smart Contracts Group and also the firm's Securities, Compliance & Investigations Group, Sheikh leads an internationally recognized team that has been instrumental in several of Canada's most notable securities and blockchain litigation mandates. His clients include Canada's largest banks, stock exchanges, thirteen of the largest cryptocurrencies in the world, as well as several blockchain pioneers including co-founders of Ethereum. In 2018, Sheikh was named among the "Top 25 Most Influential Lawyers" by Canadian Lawyer.

5. 2019 Legal Year in Review

Cryptoassets

Emerging clarity on cryptoasset regulation

6. 2020 Holiday reading: Blockchain, AI and the Four Digital Titans | McCarthy Tétrault

The second book I read was an audiobook called Smart Contracts: The Essential Guide to Using Blockchain Smart Contracts for Cryptocurrency Exchange, written by Jeff Reed. This book was at such a high level as to be practically useless. Moreover, its legal analysis was simply wrong in some essential respects. The author, for example, categorically claimed that smart contracts were not legally binding or enforceable, calling their legal validity a “myth”, and claiming this was because there were no laws that specifically made them valid. This view of the law flies in the face of solid legal research such as the opinions expressed by Primavera De Filippi and Aaron Wright in Blockchain and the Law and the recently published UK Jurisdiction Task Force Legal Statement on the Status of Cryptoassets and Smart Contracts. As far as U.S. law is concerned, one would have thought that the author would have at least considered the common law and State laws based on the Uniform Electronic Transactions Act (‘UETA’) and the Electronic Signatures in Global and National Commerce Act (‘ESIGN’) including relevant provisions dealing with contracts formed by electronic agents.

7. 2020 ITR Americas Tax Awards Shortlist | McCarthy Tétrault

Miners Be Aware: New GST/HST Measures Announced for Cryptoasset Mining

8. 2021 Canadian Federal Budget Commentary - Tax Initiatives | McCarthy Tétrault

Miners Be Aware: New GST/HST Measures Announced for Cryptoasset Mining

9. 25th Annual Regulatory Compliance for Financial Institutions | McCarthy

Cryptoasset

10. 25th Annual Regulatory Compliance for Financial Institutions | McCarthy Tétrault

Cryptoasset

11. 3iQ - Osler, Hoskin & Harcourt S.E.N.C.R.L./s.r.l.

3iQ et Bitcoin Fund dans le cadre de l’approbation de son programme visant à offrir le premier fonds d’investissement en bitcoin coté en bourse au monde

Le 30 octobre 2019, un panel de la Commission des valeurs mobilières de l’Ontario (CVMO) rendit une décision qui permettra à 3iQ Corp (3iQ), un gestionnaire de placement canadien, d’offrir le premier fonds d’investissement en bitcoin coté en bourse au monde.

Depuis la fin de l’année 2016, 3iQ avait développé Bitcoin Fund (le Fonds), un fonds d’investissement non remboursable qui investirait la quasi-totalité de ses actifs en bitcoin. Toutefois, en février 2019, le directeur de la Direction des fonds d’investissement et des produits structurés de la CVMO (IFSP) rendit une décision accueillant la recommandation du personnel de l’IFSP de ne pas émettre un reçu pour le prospectus provisoire du Fonds. Par conséquent, 3iQ exerça son droit de demander une audition et la révision de la décision du Directeur devant un panel de la CVMO.

En prenant sa décision, le panel de la CVMO considéra la preuve relative aux préoccupations d’intégrité du marché entourant les cryptoactifs, la garde et la protection des bitcoins, et l’audit des états financiers des émetteurs détenant des cryptoactifs. Le Panel de la CVMO fit référence aux décisions de U.S. Securities and Exchange Commission (SEC) qui, à ce jour, a refusé les demandes d’inscription de fonds en bitcoin cotés en bourse (ETFs). En approuvant l’émission d’un reçu pour le prospectus du Fonds, le Panel réaffirma un principe fondamental des lois canadiennes sur les valeurs mobilières – à savoir, qu’il n’appartient pas aux organismes de règlementation en valeurs mobilières d’approuver ou de désapprouver les fondements des titres offerts au public.

Le 9 avril 2020, 3iQ annonça la clôture du premier appel public à l’épargne des unités de Bitcoin Fund et sa fusion avec 3iQ Bitcoin Trust pour un montant approximatif de 14 millions de dollars américains. Les unités de classe A sont négociées à la Bourse de Toronto sous le symbole QBTC.U. Aux mois de mai et juin 2020, Bitcoin Fund compléta deux placements d’unités pour un produit brut total de 48 millions de dollars américains et de 10 millions de dollars américains, respectivement.

12. "3iQ Bitcoin Fund Proposal Denied By OSC, Application Filed For Hearing" by Addison Cameron-Huff

"3iQ Bitcoin Fund Proposal Denied By OSC, Application Filed For Hearing" by Addison Cameron-Huff

3iQ Bitcoin Fund Proposal Denied By OSC, Application Filed For Hearing

The Ontario Securities Commission (OSC) released its decision to refuse to issue a receipt for a proposed NRIF (see below) investment product called "The Bitcoin Fund" last month. The fund is being put forward by the tenacious team at 3iQ Corp., who on Friday filed an application requesting a hearing about the refusal. The application contains further details about their plans, including the role of Gemini Trust Company, a US trust company, that they intend to act as a sub-custodian to Cidel Trust Company, a Canadian trust company.

3iQ has been trying to establish this fund in Canada since at least 2016 (according to their application). For anyone interested in following in their footsteps, their 26 page filing is required reading. The investment managers (and their lawyers) have put a lot of thought into these issues, and they've included operational details in the application that are interesting notes about the state of the industry in Q1 2019. For example, paragraphs 38-49 discuss their proposed Bitcoin valuation methodology and why, in their view, it conforms to NI 81-106.

NRIFs may engage in certain investment strategies and invest in asset classes not typically permitted for mutual funds. There are not yet, however, any publicly offered (i.e., prospectus qualified) investment funds in Canada and the United States that invest substantially all of their assets in bitcoin. There are several funds that are not publicly offered in Canada that invest substantially all of their assets in bitcoin, including one managed by the Manager (the 3iQ Pooled Fund). The 3iQ Pooled Fund only offers its securities under exemptions from the prospectus requirement. The Manager has operated the 3iQ Pooled Fund since April 2018.

13. "9 Reasons Why You Should Care About Bitcoin" by Addison Cameron-Huff

"9 Reasons Why You Should Care About Bitcoin" by Addison Cameron-Huff

BLOG HOME CONTACT AUTHOR NEXT POST: HOW MUCH POWER DOES BITCOIN USE?”

9 Reasons Why You Should Care About Bitcoin

1. Every eight minutes someone receives ("mines") 25 Bitcoins (worth more than $10k)

2. The Bitcoin network is many times faster than the world's top 500 supercomputers put together

14. "A Canadian Crypto SRO" by Addison Cameron-Huff

The Canadian cryptocurrency industry should be one of the strongest in the world, being the birthplace of Ethereum, close to the US market, a good bridge from China/HK, generous tax credits for R&D work, and many other advantages. But the industry has been plagued by a poor understanding of regulatory issues, unusual viewpoints put forward to government, and repeated work that ought to be shared. These problems could be addressed through the creation of a Canadian self-regulatory organization (SRO).

15. Accident mortel d'un véhicule autonome d’Uber en Arizona : Un drame identique peut-il se produire au Québec et au Canada?

Le 11 mars dernier, la maison de vente Christie’s concluait une vente historique en proposant aux enchères une œuvre-cryptoactif de l’artiste Beeple, uniquement numérique, se concluant par une transaction de 69 millions de dollars en Ether, une cryptomonnaie1. Ce faisant, la célèbre maison d’enchères a mis sous les projecteurs les Non-Fungible Tokens (« NFT »), les jetons non fongibles pour franciser le tout, produits de la chaîne de blocs décentralisée. Si plusieurs soulignent les avantages de cette technologie des cryptoactifs, des risques importants y sont par ailleurs associés2, demandant une vigilance accrue pour tout investissement ou toute transaction impliquant des NFT. Qu’est-ce qu’un NFT ? La distinction entre biens fongibles et non fongibles n’est pas récente. Avant même l’invention de la chaîne de blocs, cette distinction servait déjà à départager ces biens dont la valeur dans l’économie est fondée soit, quant aux biens fongibles, sur leur grande disponibilité, soit, quant aux biens non fongibles, sur leur rareté. Ainsi, un bien fongible est facilement remplaçable par un équivalent ayant la même valeur marchande. Le meilleur exemple est celui de la monnaie, que ce soient les pièces, les billets, la monnaie scripturale ou la monnaie électronique, par exemple le Bitcoin. Au contraire, un bien non fongible est unique, irremplaçable. À ce titre, les œuvres d’art sont des biens non fongibles de par leur unicité ou leur très petit nombre d’exemplaires, de telle sorte que leur valeur est, entre autres, fonction de leur authenticité et de leur provenance. Les NFT sont des cryptoactifs associés à la chaîne de blocs qui reproduisent ce phénomène de rareté. À chaque NFT est associé un identifiant unique qui permet d’en assurer la traçabilité. En plus du marché de l’art, les NFT ont été associés sur le Web à la collecte d’objets virtuels, tels que des cartes de sports et d’autres souvenirs et objets de collection, incluant le premier tweet de l’histoire3. Les NFT peuvent aussi être associés à des biens réels et permettent dans ce cas d’assurer le suivi des échanges et des transactions afférents à ces biens. Déjà en 2019, Ernst & Young avait développé pour un client un système d’identifiants numériques uniques permettant d’assurer le suivi et la gestion de la collection de vins de grands crus de ce client4. Plusieurs projets s’appuient sur des cryptomonnaies, comme l’Ether, pour créer les NFT. Ce genre de cryptomonnaie est programmable et permet d’enchâsser des métadonnées par l’intermédiaire du code qui devient la clé assurant le suivi de biens tels des œuvres d’art ou d’autres biens de valeur. Quels sont les risques associés aux NFT ? Si plusieurs vantaient les avantages des NFT, notamment pour assurer une plus grande traçabilité quant à la provenance des biens échangés par transactions numériques, force est de constater que la bulle spéculative des dernières semaines a, contrairement aux attentes, engendré de nouvelles occasions de fraudes et des dérives quant aux droits associés aux œuvres échangées sur Internet. Un marché non réglementé? Même s’il n’existe pour l’instant aucun cadre législatif qui réglemente spécifiquement les transactions de cryptoactifs, les vendeurs et les acheteurs de NFT sont tout de même assujettis, notamment, aux lois et réglementations encadrant actuellement la distribution des produits et services financiers5, aux lois sur les valeurs mobilières6, à la Loi sur les entreprises de services monétaires7 et aux lois fiscales8. Un NFT, une valeur mobilière ? Dès janvier 2020, les Autorités canadiennes en valeurs mobilières (ACVM) ont identifié les « marchandises » cryptoactifs comme des biens pouvant être assujettis aux lois et aux règlements en valeurs mobilières. Ainsi, les plateformes qui gèrent et hébergent des NFT pour le compte de leurs utilisateurs exercent des activités encadrées par les lois applicables au commerce de valeurs mobilières, dans la mesure où elles conservent la possession ou le co[Truncated to 4000 Characters]

16. Actifs numériques | Préparer le terrain pour l’avenir | BLG

BLG a aussi fait partie de ceux qui ont prodigué des conseils réglementaires au premier courtier au Canada à proposer des contrats à terme en bitcoins dans le cadre de l’élaboration de ses politiques et procédures, en plus de participer à l’un des premiers dossiers portant sur la définition légale et le recouvrement de la cryptomonnaie à être entendu par les tribunaux canadiens.

Représentation du premier courtier en valeurs mobilières au Canada à proposer des contrats à terme en bitcoins (définition du cadre réglementaire et élaboration de politiques et procédures).

17. Adam Sanitt | Head of Disputes Knowledge, Innovation and Business Support, Europe, Middle East and Asia | Global law firm | Norton Rose Fulbright

Cryptoassets and sanctions: How easy is it to freeze cryptoassets?

18. Albert Weatherill | Counsel | Global law firm | Norton Rose Fulbright

Albert's diverse practice involves advising clients on regulatory compliance, regulatory change, governance, risk management, Brexit, market abuse, trading, clearing and settlement, lending, conduct, prudential regulation, client money and custody. In particular, he focuses on the design, development and regulation of innovative financial services and products, particularly across mobile and digital payments, digital assets issuance and trading, cryptoassets market infrastructure, banking as a service, consumer and corporate lending, blockchain and distributed ledger technology. He authored the UK chapter of Global Legal Insight's Blockchain & Regulation 2019, is a member of the Tech London Advocates Blockchain Legal and Regulatory Working Group, and regularly contributes to publications on FinTech matters.

Cryptoasset providers: Impact of the amendments to the MLRs 2017

19. Ana Badour

AG for C$4M to finance bitcoin mining equipment

20. Ana Badour | McCarthy

SATO Technologies Corp. signs a loan agreement with Sygnum Bank AG for C$4M to finance bitcoin mining equipment

21. Andrew Hodhod | Banking & Financial Services Lawyer Montréal | BLG

"Bitcoin: Introducing the Future of Money," BLG Financial Services Group Annual Symposium

22. Andrew Hodhod | Services bancaires et financiers Avocat Montréal | BLG

"Bitcoin: Introducing the Future of Money," BLG Financial Services Group Annual Symposium

23. Andrew W. Aziz

3iQ et Bitcoin Fund dans le cadre de l’approbation de son programme

visant à offrir le premier fonds d’investissement en bitcoin coté en

24. Are we putting too much trust in blockchain? – CBA National

In a recent feature in CBA National, the regular publication of the Canadian Bar Association, Agnese Smith examines the rising popularity of blockchain technology and explores the likelihood of the platform being truly adopted in the mainstream – which would require eliminating trusted third parties and intermediaries, including bankers, governments and social networks. Currently, blockchain is facing a number of significant technical challenges, such as scalability, that threaten its widespread adoption. Smith discusses the potential of permission-less or public blockchain which she describes as a “way to store data on a global ledger,” with unrelated computers validating it with the goal of creating a “secure, verifiable and permanent record” of transactions. Currently, the most common example of permission-less blockchain is Bitcoin. In the article, Wendy Gross, Co-Chair of the Technology Group in Osler’s Toronto office, weighs in on the future of public blockchain.

25. Ariel Laver | Associé en Technologies émergentes à Vancouver | Équipe | Fasken

Bitfury Group et Hut 8 sur le point de fonder le plus important ensemble de centres de données de bitcoins de l’Amérique du Nord

26. Ariel Laver | Emerging Technology Lawyer in Vancouver | People | Fasken

The Bitfury Group partners with Hut 8 to establish North America's largest bitcoin datacenters

27. Ars Ex Machina : l’intelligence artificielle, cette artiste

28. Ars Ex Machina: Artificial Intelligence, the artist

On March 11, 2021, Christie’s auction house made a landmark sale by auctioning off an entirely digital artwork by the artist Beeple, a $69 million transaction in Ether, a cryptocurrency.1 In doing so, the famous auction house put non-fungible tokens (“NFT”), the product of a decentralized blockchain, in the spotlight. While many extol the benefits of such crypto asset technology, there are also significant risks associated with it,2 requiring greater vigilance when dealing with any investment or transaction involving NFTs. What is an NFT? The distinction between fungible and non-fungible assets is not new. Prior to the invention of blockchain, the distinction was used to differentiate assets based on their availability, fungible assets being highly available and non-fungible assets, scarce. Thus, a fungible asset can easily be replaced by an equivalent asset with the same market value. The best example is money, whether it be coins, notes, deposit money or digital money, such as Bitcoin. On the contrary, a non-fungible asset is unique and irreplaceable. As such, works of art are non-fungible assets in that they are either unique or very few copies of them exist. Their value is a result of their authenticity and provenance, among other things. NFTs are crypto assets associated with blockchain technology that replicate the phenomenon of scarcity. Each NFT is associated with a unique identifier to ensure traceability. In addition to the art market, online, NFTs have been associated with the collection of virtual items, such as sports cards and other memorabilia and collectibles, including the first tweet ever written.3 NFTs can also be associated with tangible goods, in which case they can be used to track exchanges and transactions related to such goods. In 2019, Ernst & Young developed a system of unique digital identifiers for a client to track and manage its collection of fine wines.4 Many projects rely on cryptocurrencies, such as Ether, to create NFTs. This type of cryptocurrency is programmable and allows for metadata to be embedded through a code that becomes the key to tracking assets, such as works of art or other valuables. What are the risks associated with NFTs? Although many praise the benefits of NFTs, in particular the increased traceability of the origin of goods exchanged through digital transactions, it has become clear that the speculative bubble of the past few weeks has, contrary to expectations, resulted in new opportunities for fraud and abuse of the rights associated with works exchanged online. An unregulated market? While there is currently no legislative framework that specifically regulates crypto asset transactions, NFT buyers and sellers are still subject to the laws and regulations currently governing the distribution of financial products and services5, the securities laws6, the Money-Services Business Act7 and the tax laws8. Is an NFT a security? In January 2020, the Canadian Securities Administrators (CSA) identified crypto asset “commodities” as assets that may be subject to securities laws and regulations. Thus, platforms that manage and host NFTs on behalf of their users engage in activities that are governed by the laws that apply to securities trading, as long as they retain possession or control of NFTs. On the contrary, a platform will not be subject to regulatory oversight if: “the underlying crypto asset itself is not a security or derivative; and the contract or instrument for the purchase, sale or delivery of a crypto asset results in an obligation to make immediate delivery of the crypto asset, and is settled by the immediate delivery of the crypto asset to the Platform’s user according to the Platform’s typical commercial practice.”9 Fraud10 NFTs don’t protect collectors and investors from fraud and theft. Among the documented risks, there are fake websites robbing investors of their cryptocurrencies, thefts and/or disappearances of NFTs hosted on platforms, and copyright and tradem[Truncated to 4000 Characters]

29. Artificial Intelligence and blockchains are vulnerable to cyberattacks

Signature methods used by Bitcoin and other cryptocurrencies

According to the NIST, elliptic curve cryptography will become ineffective. Worryingly, we are talking about the method used for the signature of cryptocurrencies, including the famous Bitcoin. Recent studies indicate that this method is highly vulnerable to attack by quantum computers, which, in a few years’ time, could crack these codes in under 10 minutes.3

Aggarwal, Divesh, et al. “Quantum attacks on Bitcoin, and how to protect against them.” arXiv preprint arXiv:1710.10377(2017).

30. Asad Akhtar

Decoding crypto – Providing regulatory clarity to cryptoasset businesses

31. Australian Government Moves to Regulate Digital Currency Exchanges - Is Canada Next?

the growth of Bitcoin, arguably the most popular digital to date.4 In China, the People’s Bank of China

announced that it would be initiating an investigation of Bitcoin and met with a number of digital currency

Taking a different approach, the Japanese government declared Bitcoin to be a legal currency, and

therefore required exchanges facilitating the trading of Bitcoin to comply with regulatory requirements. While

5 https://www.cnbc.com/2017/08/17/bitcoin-faces-regulations-crackdown-by-asia-pacific-country.html

32. Australian Government Moves to Regulate Digital Currency Exchanges - Is Canada Next? | Cassels.com

While many lament the regulation of digital currencies, recent similar decisions of the governments of China and Japan, respectively, have resulted in further security for market participants, and have even bolstered the growth of Bitcoin, arguably the most popular digital to date.4 In China, the People’s Bank of China announced that it would be initiating an investigation of Bitcoin and met with a number of digital currency exchanges, warning them that they would be shut down if they violated anti-money laundering regulations. This prompted several exchanges to improve their systems in order to ensure that they remained compliant. Taking a different approach, the Japanese government declared Bitcoin to be a legal currency, and therefore required exchanges facilitating the trading of Bitcoin to comply with regulatory requirements. While imposing regulatory restrictions, this decision actually lead to a surge in demand for the currency as retailers began accepting it as payment for goods and services.5

5 https://www.cnbc.com/2017/08/17/bitcoin-faces-regulations-crackdown-by-asia-pacific-country.html

33. BC Extends its PST Registration Obligations to Online Marketplace Facilitators | McCarthy

Miners Be Aware: New GST/HST Measures Announced for Cryptoasset Mining

34. BLG - BLG Represents First Bitcoin Market Participant To Be Approved By Canadian Securities Administrators

BLG - BLG Represents First Bitcoin Market Participant To Be Approved By Canadian Securities Administrators

BLG Represents First Bitcoin Market Participant

35. BLG - Bitcoin Futures Expected to Begin Trading on Two Major U S Exchanges this Month

BLG - Bitcoin Futures Expected to Begin Trading on Two Major U S Exchanges this Month

Bitcoin Futures Expected to Begin Trading on

Amid a surging price for bitcoin, the CBOE Futures Exchange ("CBOE") has announced

that it will list bitcoin futures for trading starting on Sunday, December 10, 2017, making

it the first regulated U.S. exchange to support the trading of bitcoin futures (or any other

36. BLG - Brooks-Jason

and an exempt market dealer in order to operate a bitcoin investment fund. This was the first registration

the team that acted in connection with the direct and syndicated private placement of units of the bitcoin

 BLG Represents First Bitcoin Market Participant to be Approved by Canadian Securities Administrators

37. BLG - CSA Increases Regulatory Clarity in the Cryptic World of Digital Currencies

Over the past decade, Bitcoin, Ether and other cryptocurrencies have become

38. BLG - Digital Assets

Canada’s first investment dealer to offer bitcoin futures and was counsel in one of the first cases in Canada

 Acted for the first investment dealer in Canada to offer bitcoin futures, providing a regulatory

39. BLG - FinTech

From regulatory compliance, to cryptocurrency offerings and to Bitcoin regulations and

40. BLG - Fuller-Kathryn

 BLG Represents First Bitcoin Market Participant to be Approved by Canadian Securities Administrators

41. BLG - Gomez-Inaki

market dealer in order to operate a bitcoin investment fund (the first registration of an investment fund

 BLG Represents First Bitcoin Market Participant to be Approved by Canadian Securities Administrators

42. BLG - Hodhod-Andrew

 "Bitcoin: Introducing the Future of Money," BLG Financial Services Group Annual Symposium

43. BLG - Johnstone-MaryGrace

 Author, “Catch Me If You Can: Resolving Bitcoin Disputes with Class Actions,” Canadian Class Action

 Researcher, "Crypto‐claimants and bitcoin bankruptcy: Challenges for recognition and realization,"

44. BLG - Mansi-Julie

 Bitcoin Futures Expected to Begin Trading On Two Major U.S. Exchanges This Month

45. BLG - McGowan-Ross

 Presenter, "Blockchain Bitcoin and Cryptocurrency: Evolution of a Revolution," BLG, May 2019.

46. BLG - OSC Refuses Prospectus Receipt for Bitcoin Fund

BLG - OSC Refuses Prospectus Receipt for Bitcoin Fund

OSC Refuses Prospectus Receipt for Bitcoin

(Manager) for a preliminary prospectus in respect of The Bitcoin Fund (Fund). This filing

substantially all of its assets in bitcoin should be offered to retail investors. The OSC

refused to issue a receipt, citing the lack of established regulation for the bitcoin market,

47. BLG - OSC-Clears-Pathway-for-the-First-Publicly-Offered-Bitcoin-Fund

BLG - OSC-Clears-Pathway-for-the-First-Publicly-Offered-Bitcoin-Fund

Offered Bitcoin Fund

publicly offered bitcoin fund in Canada. The OSC Panel ordered that the Director issue a

receipt for a final prospectus of The Bitcoin Fund (the Fund), setting aside an earlier

The OSC Panel explained that although the concerns about bitcoin expressed by the

48. BLG - SEC Settlement Decision Disrupts The Rise Of Free Tokens And Bounty Programs

by piggybacking off another existing and more popular blockchain, such as Bitcoin. This

49. BLG - Seddon-Elly

 Speaker, "Bitcoins: What Are They and What Are the Legal Implications of Using Them?" BLG U, May

50. BLG - The Regulation Of Virtual Currencies In Canada

As decentralized, math based virtual currencies, particularly Bitcoin, have garnered

Currently, FINTRAC is of the view that Bitcoin exchanges are not considered to be

money service businesses since Bitcoin exchanges do not remit or transfer funds as a

Beyond the issues noted above, there is also the question of whether Bitcoin, or other

personal property security legislation, it would appear that Bitcoin would be considered

51. BLG - UK-Financial-Conduct-Authority-Releases-Final-Guidance-on-Cryptoassets

BLG - UK-Financial-Conduct-Authority-Releases-Final-Guidance-on-Cryptoassets

Guidance on Cryptoassets

the regulations applicable to cryptoassets (the Policy Statement) under the U.K.

how the FCA determines whether a particular cryptoasset is a “security”, the scope of

with carrying out regulated activities in relation to cryptoassets that are considered to be

52. BLG - Wakeling-Whitney

 Fidelity Investments Canada ULC: Advising Fidelity in relation to the launch of bitcoin funds in Canada

 BLG Represents First Bitcoin Market Participant to be Approved by Canadian Securities Administrators

53. BLG - Wallis-Robert

an investment fund manager and an exempt market dealer in order to operate a bitcoin investment fund,

bitcoin fund to investors in Canada and abroad.

54. BLG - Will the Coffey Class Action have a Ripple Effect

spectrum has cryptocurrencies like Bitcoin, which are used mainly to store and transfer

55. BLG - blg-represents-fidelity-in-launch-of-its-crypto-business-and-bitcoin-funds-in-canada

BLG - blg-represents-fidelity-in-launch-of-its-crypto-business-and-bitcoin-funds-in-canada

business and bitcoin funds in Canada

represents Fidelity Investments Canada ULC (Fidelity Investments) in the launch of Fidelity Advantage Bitcoin

ETFTM (the ETF), which invests directly in bitcoin and leverages Fidelity Clearing’s bitcoin trading and custody

solution to purchase and store bitcoin. The ETF began trading on the Toronto Stock Exchange on Dec. 2, 2021.

56. BLG - crypto-asset-issuer-guidance-from-the-CSA

cryptocurrencies (i.e., Bitcoin or Ether) versus other crypto assets, such as digital

57. BLG - federal-financial-institutions-legislative-and-regulatory-reporter-february-2022

assets (such as Bitcoin);

58. BLG - federal-financial-institutions-legislative-and-regulatory-reporter-may-2022

on specifying cryptoassets'

cryptoassets and issuing

59. BLG Represents First Bitcoin Market Participant To Be Approved By Canadian Securities Administrators | BLG

BLG Represents First Bitcoin Market Participant To Be Approved By Canadian Securities Administrators | BLG

Insights BLG Represents First Bitcoin Market Participant To...

BLG Represents First Bitcoin Market Participant To Be Approved By Canadian Securities Administrators

On September 6, 2017, the British Columbia Securities Commission (the “BCSC”) announced the first registration of an investment fund manager focused on cryptocurrency investments. First Block Capital Inc. (“First Block”), an investment fund manager based in Vancouver, British Columbia, was granted registration pursuant to National Instrument 31-103 — Registration Requirements, Exemptions and Ongoing Registrant Obligations in the categories of “investment fund manager” and “exempt market dealer” in British Columbia and Ontario, with the BCSC acting as the principal regulator. The registrations were granted to allow First Block to operate an investment fund that will invest exclusively in bitcoin.

BLG represented First Block with a team led by Jason Brooks that included Rob Wallis in relation to the registration application, and Carol Derk, Craig Webster (Tax), Grace Pereira (Tax), Whitney Bell and Inaki Gomezin relation to First Block's bitcoin investment fund.

60. BLG represents Fidelity in launch of its crypto business and bitcoin funds in Canada | News | BLG

BLG represents Fidelity in launch of its crypto business and bitcoin funds in Canada | News | BLG

BLG represents Fidelity in launch of its crypto business and bitcoin funds in Canada

Toronto (December 2, 2021) – BLG is proud to represent Fidelity Clearing Canada ULC (Fidelity Clearing) as the first IIROC dealer that can trade and custody crypto assets for institutional investors in Canada. BLG also represents Fidelity Investments Canada ULC (Fidelity Investments) in the launch of Fidelity Advantage Bitcoin ETFTM (the ETF), which invests directly in bitcoin and leverages Fidelity Clearing’s bitcoin trading and custody solution to purchase and store bitcoin. The ETF began trading on the Toronto Stock Exchange on Dec. 2, 2021.

At the same time, Fidelity Investments developed the ETF, as well as a mutual fund that invests in the ETF. In this connection, BLG assisted Fidelity Investments with obtaining several novel securities regulatory exemptions that allow Fidelity Investments to offer these investment funds in a manner that can fully leverage Fidelity’s global bitcoin trading and custody solution. This relief included:

The ability of the ETF to accept digital assets as subscription proceeds for creation units of the ETF. This makes the ETF the first bitcoin ETF in Canada to offer this in-kind subscription mechanism to its designated broker and dealers.

61. "Bank of Canada Working Paper Says "Digital Currencies Will Be Counterfeited" - Why They're Wrong" by Addison Cameron-Huff

The Bank of Canada released a working paper this month that contains a bold claim: Lesson 1: Digital currencies will be counterfeited. The paper is on the lessons that private bank notes from many decades ago hold for digital currencies today. Much of the paper consists of an excellent history of bank notes. But the paper also contains claims about digital currencies, specifically, private, non-Central Bank affiliated digital currencies like Bitcoin. This blog post explains why the working paper's Lesson 1 claim about digital currency counterfeiting is not correct.

But why is the paper wrong? Can Bitcoin be counterfeited?

There has never been a counterfeit bitcoin. Distributed, decentralized digital currencies offer a new paradigm of money that can finally be free of counterfeiting by relying on cryptography and massive computer networks. After almost a decade of experience with this technology and no examples of counterfeiting, I don't think it's fair to say that counterfeiting is inevitable.

In the 8 years that Bitcoin has been operating there has never been a single instance of a "counterfeit" bitcoin. No one can create bitcoins other than as part of mining, which is built into the software and secured by the largest network of computing power that the world has ever built. Despite many years of operating as a public network, with the source code completely known to every participant in the system, and billions of dollars at stake, no one has counterfeited a bitcoin.

Why has a "counterfeit" bitcoin not been created? Because there is a network of devices around the world that do approximately 3 million trillion checks per second as part of the "mining" system, and tens of thousands of computers that verify the authenticity of transactions by ensuring that the inputs of one transaction are the result of outputs of a previous transaction.

62. Banking & Finance | Practices | Fasken

Crypto finance company closes bitcoin mining equipment finance deal

63. Banking & Financial Services | McCarthy

SATO Technologies Corp. signs a loan agreement with Sygnum Bank AG for C$4M to finance bitcoin mining equipment

64. "Becoming a Contract Programmer in Canada" by Addison Cameron-Huff

BLOG HOME CONTACT AUTHOR NEXT POST: WHAT DOES A BITCOIN LAWYER DO?

NEXT: WHAT DOES A BITCOIN LAWYER DO? ►

65. "Being a Lawyer Who Accepts Bitcoin" by Addison Cameron-Huff

"Being a Lawyer Who Accepts Bitcoin" by Addison Cameron-Huff

Being a Lawyer Who Accepts Bitcoin

According to coinmap.org I'm the only lawyer in Toronto who accepts bitcoin.

I received my first payment from a client a few weeks ago and it was a very convenient process. I invoiced in Canadian dollars and sent them my "address". They looked up the price on the main Canadian exchange and he sent me that amount of bitcoins to settle the bill.

It's early days for Bitcoin. My fiance noted about accepting bitcoin that "it's like when credit cards first started".

66. "BitPay (Stripe for Bitcoin): $1m+ Daily Volume" by Addison Cameron-Huff

"BitPay (Stripe for Bitcoin): $1m+ Daily Volume" by Addison Cameron-Huff

BitPay (Stripe for Bitcoin): $1m+ Daily Volume

BitPay (a less feature-rich Stripe for Bitcoin) claims to be processing more than $1 million USD in transactions per day.

It's hard to get a sense of how large the world of Bitcoin is, and especially hard to get a handle on the amount used for commerce vs. speculation. BitPay is one of the main merchant processing companies so this statistic is one worth paying attention to.

67. "Bitcoin Arbitration System" by Addison Cameron-Huff

"Bitcoin Arbitration System" by Addison Cameron-Huff

Bitcoin Arbitration System

Arbitration clauses are a common feature of commercial contracts*. As Bitcoin becomes a more common way of transacting business I can imagine there being two-of-three multisig used with an arbitration company.

How the scheme would work is that one key is held by the buyer, one by the seller and the third by a mutually agreed upon arbitration agent. The agent would do whatever is ordered by the arbitration that is triggered by a dispute between the parties. This would allow for arbitration orders to be both binding in law and in practice (becomes the bitcoins would be sent immediately).

After writing this note I saw that there's a similar idea expressed in the "Contracts" section of Bitcoin.org.

68. Bitcoin Futures Expected to Begin Trading on Two Major U.S. Exchanges this Month | BLG

Bitcoin Futures Expected to Begin Trading on Two Major U.S. Exchanges this Month | BLG

Perspectives Bitcoin Futures Expected to Begin Trading on Two M...

Bitcoin Futures Expected to Begin Trading on Two Major U.S. Exchanges this Month

Amid a surging price for bitcoin, the CBOE Futures Exchange ("CBOE") has announced that it will list bitcoin futures for trading starting on Sunday, December 10, 2017, making it the first regulated U.S. exchange to support the trading of bitcoin futures (or any other cryptocurrency-derived futures product). According to CBOE, the bitcoin futures will trade under the ticker symbol ‘XBT’ and will be cash-settled contracts based on Gemini Trust Company, LLC’s U.S. dollar auction price for bitcoin. The Chicago Mercantile Exchange ("CME") will also be listing bitcoin futures for trading, beginning on Monday, December 18, 2017. The CME’s bitcoin futures will also be cash-settled, based on the CME CF Bitcoin Reference Rate ("BRR"), which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin and relies on the global average price of bitcoin based on four cryptocurrency exchanges.

These developments are seen by many as “legitimizing” bitcoin — moving it from a virtually unregulated environment to a regulated one, and bringing more oversight and safeguards to the developing digital currency market.

69. "Bitcoin Lawyers of Canada" by Addison Cameron-Huff

"Bitcoin Lawyers of Canada" by Addison Cameron-Huff

BLOG HOME CONTACT AUTHOR NEXT POST: TWO GOOD ARTICLES ON HOW BITCOIN WORKS”

Bitcoin Lawyers of Canada

I think it might be useful to form a group for lawyers who have particular expertise in the area of Bitcoin. Maybe "Canadian Bitcoin Lawyers" or maybe the "North American Bitcoin Lawyers Group".

NEXT: TWO GOOD ARTICLES ON HOW BITCOIN WORKS ►

70. "Bitcoin Magazine Article on Tokenization of Real World Assets" by Addison Cameron-Huff

"Bitcoin Magazine Article on Tokenization of Real World Assets" by Addison Cameron-Huff

Bitcoin Magazine Article on Tokenization of Real World Assets

My article on tokenization of real world assets was published by Bitcoin Magazine on Friday.

Tokenization is the process of converting rights to an asset into a digital token on a blockchain. There is great interest by financial intermediaries and technologists around the world in figuring out how to move real-world assets onto blockchains to gain the advantages of Bitcoin while keeping the characteristics of the asset.

71. "Bitcoin May Replace Wire Transfers" by Addison Cameron-Huff

"Bitcoin May Replace Wire Transfers" by Addison Cameron-Huff

Bitcoin May Replace Wire Transfers

A few weeks ago I spoke with someone who buys a lot of Bitcoin. They buy it and then immediately send it to a supplier in China who then ships them manufactured goods. They used to use wire transfers but said it took about four days to clear and the Chinese company wouldn't ship the goods until they got the money. With Bitcoin they get the money immediately and he gets his goods four days sooner. The buyer also saved a bit on wire transfer/currency conversion fees.

Bitcoin would be a great way for banks to settle transactions between themselves without using intermediate banks/payment networks because it's instantaneous and irreversible. This could enable banks to offer wire transfer-like products that settle in minutes instead of days (or weeks).

72. "Bitcoin Meets the Stock Market: Legal Issues" by Addison Cameron-Huff

"Bitcoin Meets the Stock Market: Legal Issues" by Addison Cameron-Huff

BLOG HOME CONTACT AUTHOR NEXT POST: WORLD'S FIRST PUBLICLY TRADED BITCOIN EXCHANGE:...”

Bitcoin Meets the Stock Market: Legal Issues

Bitcoin is changing perspectives on how we manage assets. If money can be moved around instantaneously without friction then why not shares too? In 2015 shares are often digital abstractions traded through all-electronic stock exchanges. Bitcoin enthusiasts look forward to a world where banking, investment and securities companies are disintermediated and the world's savers can invest around the world without friction. But how does this new model for issuing stock fit within securities laws?

Many companies around the world have sold stock to the public in exchange for Bitcoin. Some of these companies are even listed on unregulated "stock exchanges" (e.g. Havelock Investments). These companies tend to be Bitcoin-related including CAVirtEx (formerly the largest Bitcoin-CAD exchange in Canada) that went down this road (and later delisted).

73. "Bitcoin Scripts" by Addison Cameron-Huff

"Bitcoin Scripts" by Addison Cameron-Huff

Bitcoin Scripts

Interesting blog post on how to use the Bitcoin scripting language to build complex applications: https://curiosity-driven.org/bitcoin-contracts.

The examples they give are Kickstarter-type campaigns, escrow and gambling. I didn't know these sorts of applications could be built (trustlessly) on top of the Bitcoin scripting language.

74. "Bitcoin Speeches in House & Senate" by Addison Cameron-Huff

"Bitcoin Speeches in House & Senate" by Addison Cameron-Huff

Bitcoin Speeches in House & Senate

There have been four speeches made in 2014 about Bitcoin in the House & Senate.

"However, it is important to continually improve Canada's regime to address emerging risks, including virtual currencies, such as Bitcoin, to strengthen Canada's international leadership in the fight against money laundering and terrorist financing."

"Good luck to you in this study. Bitcoins and their cousins are subjects that I simply cannot grasp — sort of like the theory of relativity."

75. Bitcoin could be hampering future of blockchain | Gowling WLG

Bitcoin could be hampering future of blockchain | Gowling WLG

FINANCE EXPERTS WARN THAT BITCOIN COULD BE HAMPERING THE FUTURE OF BLOCKCHAIN

Negativity surrounding Bitcoin and other cryptocurrencies could be obstructing blockchain's full potential

Insight gathered in a report by international law firm Gowling WLG reveals that financial services experts are fearful that if the negative headlines surrounding the likes of Bitcoin impact industry opinion about blockchain software, it will perpetuate the common confusion between the two.

The report, entitled 'The ultimate disruptor - how blockchain is transforming financial services', states that an estimated US$2.1 billion will be spent on blockchain solutions[1] during 2018 and, by 2021, levels are expected to reach US$9.2 billion. In order for the system to reach these levels of growth and its benefits to be realised, it's essential for businesses to understand the capabilities of blockchain and other distributed ledger technology (DLT) beyond Bitcoin.

76. Bitcoin dispute gives insight into English court | Gowling WLG

Bitcoin dispute gives insight into English court | Gowling WLG

BITCOIN DISPUTE GIVES

77. "Bitcoin: Canadian Regulatory Landscape" by Addison Cameron-Huff

"Bitcoin: Canadian Regulatory Landscape" by Addison Cameron-Huff

Bitcoin: Canadian Regulatory Landscape

I've written a series of blog posts that will be published on the Decentral blog over the coming weeks. The first one is "Bitcoin: The Canadian Regulatory Landscape". It provides an overview of the laws that Bitcoin businesses should be interested in.

Coming up tomorrow will be a post about the steps for setting up a Bitcoin business in Canada.

78. Bitfury Group et Hut 8 sur le point de fonder le plus important ensemble de centres de données de bitcoins de l’Amérique du Nord | Mandats représentatifs | Fasken

Bitfury Group et Hut 8 sur le point de fonder le plus important ensemble de centres de données de bitcoins de l’Amérique du Nord | Mandats représentatifs | Fasken

Bitfury Group et Hut 8 sur le point de fonder le plus important ensemble de centres de données de bitcoins de l’Amérique du Nord

RETOUR ACCUEIL SOLUTIONS MANDATS REPRÉSENTATIFS BITFURY GROUP ET HUT 8 SUR LE POINT DE FONDER LE PLUS IMPORTANT ENSEMBLE DE CENTRES DE DONNÉES DE BITCOINS DE L’AMÉRIQUE DU NORD

Nous avons conseillé le Bitfury Group (Bitfury) dans le cadre de son partenariat avec Hut 8 Mining Corp. (Hut 8) en vue de faire l’acquisition, l’installation, l’entretien et l’exploitation des plus grands centres de données de bitcoins en Amérique du Nord.

Bitfury, chef de file mondial offrant des services complets liés aux chaînes de bloc et l’un des plus importants fournisseurs privés d’infrastructure de l’écosystème des chaînes de bloc, fournira à Hut 8 exclusivement des solutions minières de bitcoin comprenant du matériel et des logiciels propriétaires, des installations et des services d’exploitation.

79. Blanchiment d'argent au Canada : Modifications proposées

Cette définition engloberait les célèbres cryptomonnaies comme le bitcoin et l’ether et est éventuellement suffisamment large pour comprendre une myriade d’autres jetons, pièces et cryptoactifs qui peuvent être échangés contre des fonds, soit directement soit par voie d’un échange intermédiaire.

80. "Blockchain Governance and the Public Interest Standard" by Addison Cameron-Huff

Many concepts sound great in theory but become thorny in practice. One of those concepts is the idea of the "public interest". The term has existed as a principle for good government, in various forms, for thousands of years and it's widely used in law. In a recent blog post, a well-known Ethereum developer implicitly put forward the idea that public blockchains ought to be run in the "public interest". But what does the term mean and is that a standard that ought to be at the heart of Ethereum, or any other public blockchain? It's a concept that's widely used in law. Why not for Ethereum?

The term "public interest" appears in ethical guides, statutes, and administrative law textbooks all over the world. But this simple term hides a complicated reality. Few people agree on what the "public interest" is, how to identfiy it, or how to know when something isn't in the public interest. This is a standard that opens the door to debate, rather than providing a standard in the sense of Ethereum's ERC-20, technical standards, or really anything that programmers would say is a "standard". What lawyers and regulators call a "standard" might surprise people who are not familiar with the thousands of pages of scholarship on various sorts of "standards" in law (e.g. Canadian administrative law).

81. Blockchain IPOs: Capital Raising in a Crypto-World | Knowledge | Fasken

A particularly high profile hack catapulted ICOs into the regulatory spotlight and resulted in an important directive from the Securities and Exchange Commission (SEC) in the United States of America. In 2016, the Decentralised Autonomous Organisation (DAO), an entity which is essentially a very complex smart contract which provides a secure digital ledger to track financial transactions and is built on the ethereum network launched a US$150 million ICO. The ICO was immediately hacked and DAO and investors lost US$50 million. This triggered an investigation by the SEC into the DAO ICO and resulted in a finding that certain digital tokens constituted “securities” for the purpose of federal law. In the SEC press release on the issue, offerors are cautioned that:

82. Blockchain Technologies Are Being Patented in Canada – What does this Mean for Future Blockchain Patents? | Ridout & Maybee LLP

1 https://bitcoin.org/bitcoin.pdf

83. Blockchain for tomatoes | Gowling WLG

At the recent ANA/Brand Activation conference in Chicago, we advertising lawyers were inundated with all things blockchain. At that point, it became evident that this technology was not just going to apply to Bitcoin, gaming, and finance, but the concept of the blockchain will undoubtedly have applications across a multitude of sectors, including agriculture and the entire Food & Beverage sector.

84. Blockchain law: A little less privacy: Cryptocurrency transactions under the Fourth Amendment | United States | Knowledge | Global law firm | Norton Rose Fulbright

In this month's Blockchain Law column, we discuss the appeal of using cryptocurrencies like Bitcoin and its perception that they may offer greater privacy protections for financial transactions. But a recent federal appellate ruling in a Fourth Amendment case suggests this perception may not align with current legal reality.