cryptocurrency-backed loan company APX Lending has received waivers from the Canadian Securities Administration (CSA) to provide cryptocurrency-backed loans without the need for traditional dealer registration or prospectus.
“In the past two years, APX has developed a (…) regulatory framework in partnership with the Ontario Securities Commission (OSC) to facilitate this, as there was no such framework in Canada before,” an APX spokesperson told CoIntelegraph. “This exemption is APX-specific and does not establish a precedent for other companies.”
The platform currently supports Bitcoin (BTC) and ether (ethereth) As collateral for Canadian or US dollar loans, the conditions range from three months to five years. APX plans to add more digital assets and fiat currency options in the near future.
The company claims to expand its coverage to the United States and plans to expand in future regulatory approvals in Australia and New Zealand. Andrei Poliakov, founder and CEO of APX Lending, said in a statement:
“By interacting with Canadian regulators and leading in Canada, we set new benchmarks for compliance and security of crypto-enabled loans, helping retail and institutional borrowers unlock liquidity while maintaining ownership of their digital assets.”
APX loans range from 20%-60% loan-to-value (LTV), and if the borrower does not take corrective action to increase the collateral, the automatic liquidation mechanism is 90%, or when the LTV reaches the 80% warning level and partially repays the loan, they have notified potential liquidation.
Loan Terms and Conditions From three months to five years, it reflects the relatively flexible structure of crypto-supported loans Less access to options Found in traditional financial systems.
APX Loans are registered with the Financial Transactions and Reporting Analysis Centre (FINTRAC). Its main competitors in the local market include Ledn, Nexo and Youhodler.
Andrei Poliakov, founder and CEO of APX Lending, at the 2024 Blockchain Futurism Conference. Blockchain Futurism Conference
Related: What Canada’s new liberal prime minister Mark Carney means to cryptocurrency
Canada’s shifted political landscape could cause trouble for crypto regulations
Recently elected Canadian Prime Minister Mark Carney is a former central banker Criticizing Bitcoin as supply restrictionsaying the maximum supply of 21 million is a “serious defect.”
exist speech “Reconstructing the virtual global gold standard will be a crime of currency forgetting,” Carney said at the Scottish Economics Conference held at the University of Edinburgh in March 2018.
Carney’s critical views on bitcoin and cryptocurrencies could impact Canada’s regulatory direction and increase uncertainty about the future of the country’s cryptocurrency industry.
But Carney’s 2025 platform An overview of making Canada a global leader in emerging technologies such as artificial intelligence and the “digital industry” Trade tensions with the United States.
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