Canadian Watchdog Gives Nod To Nation's "First" Bitcoin Fund House

Josh O'Neill

8 September 2017

Canadian regulators have approved what is supposedly the country’s first investment fund manager dedicated to crypto-currency exposures.

The British Columbia Securities Commission gave Vancouver-based First Block Capital the green light to operate as an investment fund manager and an exempt market dealer in order to launch a bitcoin investment fund in Ontario and British Columbia.

"Crypto-currency investments are a new and novel form of investing in Canada," said Zach Masum, manager, legal services, capital markets regulation, and leader of the BCSC's technology team in a statement. "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."

The regulatory approval comes as bitcoin and other crypto-currencies continue to draw intensified scrutiny from regulators globally because of their potential to facilitate money laundering, as well as risks associated with fraud and cyber-theft.

First Block Capital launched the Canadian Bitcoin Trust last July to offer accredited investors exposure to the price fluctuations of bitcoin through an open-ended unit trust fund.