Source: Zed Network
ZED Network, a global platform built on blockchain technology for money transfer operators (MTOs), today announced it has been granted discretionary exemptive relief under the Canadian Regulatory Sandbox from certain prospectus and dealer registration requirements under Canadian securities laws for the distribution of the ZED digital token for international remittance and foreign exchange.
The relief was granted by the Ontario Securities Commission (OSC) as part of its OSC LaunchPad, on behalf of the Canadian Securities Administrators (CSA).
The first-of-its kind exemption in Canada for a primary distribution of digital tokens under the CSA Sandbox enables the Toronto-based startup to distribute its ZED tokens in Canada on a prospectus-exempt basis and for ZED to be transferred pursuant to the accredited investor exemption. The relief also permits ZED to be distributed to MTOs registered as a money services business in Canada with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and also to foreign MTOs registered or authorized to operate as money services businesses, or its equivalent, in accordance with the laws of foreign jurisdictions. The relief also provides that ZED will be freely transferable subsequently among these MTOs, as well as accredited investors, enabling its use as business-to-business payment remittance tokens.
ZED Network CEO and Founder Alan Safahi said, “This relief marks an exciting moment for Canada’s digital currency community as well as for us as we seek to earn the trust of our customers with a more transparent, secure and cost-effective remittance solution. We have worked diligently with the Canadian regulators to achieve this to ensure the flow of funds through our digital network is in full compliance with all applicable laws.”
Globally, the value of remittances sent each year is US$600 billion and growing, with smaller MTOs accounting for about 75 percent of the remittance market (US$450 billion a year).
ZED addresses the complexities and imbalances within the remittance market, providing a cost-effective and frictionless remittance experience. ZED Network’s platform, targeted to smaller MTOs, offers a full suite of products, including its comprehensive “remittance-in-a-box” solution, mobile and web apps, back office support, and KYC/AML monitoring and reporting. The ZED Network is accessible only by eligible users vetted and verified to trade in ZED tokens, at various levels as outlined by the CSA Sandbox relief.