The British Columbia Securities Commission has for the first time registered an investment fund manager that trades solely in cryptocurrency, it announced September 6.
First Block Capital Inc., based in Vancouver, has been granted status as an exempt market dealer to operate a bitcoin investment fund.
“Cryptocurrency investments are a new and novel form of investing in Canada,” said BCSC tech team leader Zach Masum. “We have seen from the market and from investors that there is a strong appetite for access to these kinds of investments.
“This first registration allows access to bitcoin investments, while providing the BCSC with unique mechanisms to monitor operations in a rapidly developing area.”
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The BCSC said there are many inherent risks that are unique to crytocurrency investments, in particular those relating to cybersecurity.
First Block Capital is also registered and exempt as a market dealer in Ontario, with the BCSC as its principal regulator.
Bitcoin is a cryptocurrency that was established in 2009. It is decentralized, which means no organization or individual controls its network. As of press time, one bitcoin was worth just over $5,672 Canadian.
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