Ontario Regulator Lets Security Token Startup Test Secondary Trading
The Ontario Securities Commission (OSC) is allowing a tokenization startup to facilitate secondary-market trading of its tokens by giving the firm regulatory relief for a short time.
TokenGX, an affiliate of TokenFunder, has been given the green light to pilot the project to gather data on secondary-market trading, according to an OSC filing. The trading would help TokenFunder, a startup that helps other firms raise funds through token sales, provide liquidity for investors, the regulator said.
Both TokenGX and TokenFunder run on the public ethereum blockchain, so initial token offerings, as well as secondary market trading transactions, are visible to anyone.TokenGX is the first company approved by the OSC for such testing, the company said.