When it comes to raising capital for your business, how to start an initial coin offering in Canada (ICO) is one of the most popular options. However, ICOs are not for everyone and can be risky, technically challenging, and difficult to market. If you are considering launching an ICO, you need to understand how it works and what it takes to succeed.

How to Start an Initial Coin Offering in Canada

In Canada, an ICO is a crowdfunding scheme that allows businesses to raise money by selling “tokens” that represent utility or ownership stake in a new blockchain-based business or service. These tokens can be exchanged for cash or for other assets such as equity, debt, or products. ICOs are often compared to an initial public offering (IPO), a type of stock sale that allows businesses to raise funds by selling shares of their company.

Investors purchase tokens that they believe will have value and are often given access to exclusive features of a project. These features could include access to special software or services, loyalty programs, or other benefits related to the technology.

While ICOs are commonly promoted as being unregulated, the reality is that many of them closely resemble securities and require compliance with a range of securities laws. This article explores how ICOs are viewed by Canadian securities regulators and provides an overview of the requirements that issuers should consider when planning to launch an ICO. This includes ensuring that your ICO is properly planned, thoroughly researched and based on a sound basis of compliance with applicable securities laws.