Connect with us

Regulation

Canada’s first regulated crypto exchange Wealthsimple Crypto goes live

Published

on



Wealthsimple Crypto, the first regulated cryptocurrency exchange in Canada, is rolling out its trading platform to the public today.

Starting from Sept. 22, users in all 13 provinces and territories in Canada will be able to sign up for the new product and start trading cryptocurrencies.

At the launch, Wealthsimple Crypto will allow users to buy and sell Bitcoin (BTC) and Ether (ETH) through the platform’s mobile app. Deposits and withdrawals can only be made in Canadian dollars,

The public launch of Wealthsimple Crypto comes shortly after the company received regulatory approval from Canadian securities regulators on Aug. 7. To date, Wealthsimple Crypto is the only crypto asset platform that has been authorized to operate in Canada by the Canadian Securities Administration (CSA), a representative told Cointelegraph.

Prior to public launch, Wealthsimple Crypto was available in beta, allowing Canadians to join a waitlist to be invited to use the platform. According to Wealthsimple’s representatives, more than 130,000 Canadians joined the waitlist so far.

Wealthsimple will not hold any cryptocurrency assets in its own hot or cold wallets. Blair Wiley, Wealthsimple’s general counsel, says that the crypto custody service on Wealthsimple is provided by Gemini, a major United States-based digital asset platform founded by Cameron Winklevoss and Tyler Winklevoss.

According to Wiley, collaboration with Gemini is one of the factors that contributed to Wealthsimple Crypto becoming regulated in Canada. The exec previously said that trying to offer too many services can be an impediment to becoming a fully regulated exchange, stating:

“Probably the simplest explanation is that folks who came before us tried to do everything — buy and sell crypto for clients, operate an exchange, hold onto the crypto that clients buy […] And each one of those activities has its own long list of regulatory requirements. If one business tries to do all that, it makes getting regulatory approval a lot harder.”

Based in Toronto, Wealthsimple is a Canadian online investment management service focused on millennials. The company announced its plans to offer crypto trading in July 2020.



Source link

Regulation

Brad Garlinghouse’s lawyers file request for Binance documents in ‘international’ challenge to SEC lawsuit

Published

on

By



The lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission, or SEC, now involves major crypto exchange Binance after a recent filing on behalf of Ripple CEO Brad Garlinghouse.

According to court documents filed in the Southern District of New York on Monday, Garlinghouse’s legal team has requested documents “relevant to the case and unobtainable through other means” from Binance Holdings Limited, the Cayman Islands-based subsidiary of the major cryptocurrency exchange. The filing cited U.S. laws concerning the Department of State and the Hague Convention and asked the court to issue a letter of request for the Central Authority of the Cayman Island to compel evidence from Binance.

“Mr. Garlinghouse seeks foreign discovery on the basis of his good faith belief that [Binance Holdings Limited] possesses unique documents and information concerning this case, and specifically, concerning the process by which transactions in XRP allegedly conducted by Mr. Garlinghouse on foreign digital asset trading platforms were conducted,” said the filing.

Specifically, the lawyers seem to be challenging claims from the SEC that the Ripple CEO sold more than 357 million XRP tokens on “worldwide” crypto trading platforms to investors “all over the world.” The team cited Section Five of the Securities Act of 1933, stating the alleged illegal XRP sales applied only to domestic sales and offers of securities. The documents requested of Binance may contain evidence in support of that claim.

“As the SEC knows, Mr. Garlinghouse’s sales of XRP were overwhelmingly made on digital asset trading platforms outside of the United States […] the discovery that Mr. Garlinghouse seeks will be relevant to demonstrating that the offers and sales that the SEC challenges did not occur in this country and are not subject to the law that the SEC has invoked in this case.”

Related: Judge allows Ripple to depose SEC official who decided ETH is not a security

The request is part of a lawsuit the SEC filed against Ripple in December, alleging the firm, Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales. Ripple’s legal team had previously claimed that XRP is more like Bitcoin (BTC) or Ether (ETH) — which the regulatory body has classified as commodities rather than securities.

However, the firm seems to be switching gears — or trying to augment its case — by challenging allegations of domestic versus international token sales. Garlinghouse and Larsen filed a motion in June petitioning international authorities to request documents from several non-U.S.-based crypto exchanges including Bitstamp, Huobi, and Upbit. The case will reportedly end the pre-trial discovery process on Oct. 15.