Professional Documents
Culture Documents
Caution:
Financial
Consumers and
the Cryptoasset
Sector
June 28, 2018
TABLE OF CONTENTS
Executive Summary................................................... 1
Background................................................................ 7
Methodology............................................................ 12
Key findings.............................................................. 13
Conclusion................................................................ 22
Notes......................................................................... 24
Five per cent Based on recent population Past and present cryptoasset owners
estimates,1 this figure translates into cited multiple, often overlapping
of Ontarians
over 500,000 Ontarians currently reasons for acquiring cryptoassets:
currently own holding at least some cryptoassets.
Enthusiasm for technology: 46 per
cryptoassets An additional 4 per cent of
cent said they acquired cryptoassets
Ontarians owned cryptoassets in the
out of interest in new technologies,
past but no longer do.
while 18 per cent cited blockchain
Men aged 18-34 were substantially technology’s potential to prevent loss
more likely to report owning a and fraud.
cryptoasset than the general public,
Speculation: 42 per cent said they
with 14 per cent reporting that they
acquired cryptoassets in the hope of
currently own a cryptoasset.
selling them at a higher price later.
Medium of exchange: 25 per cent
said they acquired cryptoassets
because they wanted to make
payments anonymously, 23 per cent
5
said they wanted to use cryptoassets
to make payments in Canada or
the U.S., and 14 per cent said they
Currently own wanted to use cryptoassets to make
a cryptoasset international remittances.
4
Skepticism in institutions: 12 per
cent said they acquired cryptoassets
because they have low trust in banks,
Used to own and 11 per cent said they acquired
a cryptoasset
cryptoassets because of low trust in
government.
INVESTOR OFFICE 1
Half of For the most part, cryptoasset owners spending $10,000 or more acquiring
cryptoasset have not spent substantial amounts cryptoassets.
of money acquiring the cryptoassets
owners spent they own, with half spending under
Most past and present cryptoasset
under $1,000 owners used cash savings to purchase
$1,000, and 90 per cent spending
cryptoassets. Of those who used a
on their under $10,000. However, 9 per cent
credit card or otherwise borrowed
cryptoassets of cryptoasset owners—translating to
money, more than 2 in 3 have paid
about 50,000 Ontarians—reported
back the money they borrowed in full.
38
Spentunder
under$1,000
$1000
Spent
25
Spent$1,000
Spent $1000 to <$5,000
<$5000
15
Spent $5000 to <$10,000
Spent $5,000 to <$10,000
5
Spent $10,000
Spent $10,000to
to<$20,000
<$20,000
4
Spent$20,000+
Spent $20,000+
Don’t know (1 per cent) not shown.
70
Fully paid back
Cash savings 70
Fully paid back
Credit card
Cash savings
Sold investments
Credit card
Sold investments
Received free
ReceivedBorrowed
free
Borrowed
27 27
Still owe some Still owe some
2 2
Still owe full amount
1Don’t know
Still owe full amount
Don’t know (5 per cent) not shown.
e business What the token Management team Business plan Whether theICO
Whether the ICOis
located lets users do The management team The business plan regulated
is regulated
58% 46% 46% 44% 29%
about an ICO
39
Social media
33
Friend or family
INVESTOR OFFICE 3
Almost half (46 per cent) of past and Where past and present cryptoasset
Cryptoasset
present cryptoasset owners reported owners acquired cryptoassets
trading acquiring cryptoassets on an online
platforms cryptoasset trading platform.
are the most Trading platform users reported using
common a variety of platforms based in North
vehicle for America, Europe, and Asia.
Online t
acquiring Many users reported having issues Mining
cryptoassets using these platforms, including: Cryptoa
Online trading platform Mining Cryptoasset ATM Given to me for free (e.g., by...)
Halt in trading: 21%
In exchange for goods or services
ICO Don’t know Other
Given to
Problems withdrawing money: 20% In excha
Problems funding account:2 16% ICO
Cryptoasset tradingplatform
platform Mining Cryptoasset ATMATM Given to me for free
Online trading Mining Cryptoasset Given
(e.g., byto me for free (e.g., by...)
AirDrop) In exchange for goods or services
ICO
ICO Don’t know
Don’t know Other
Other
7 Don’t know
16%
Financial Consumer
Agency of Canada
15%
Consumer Protection
Ontario 15%
15%
Bank of Canada
Financial Services
Commission of Ontario
15%
13 % Ontario Securities
Commission 9%
30 % Local MP or MPP
The police
Don’t know 9%
Office of the Superintendent
of Financial Services
7%
Other
Cryptoasset When given a list of organizations In addition, when asked who they
and asked where they would go believe regulates ICOs, half of past
buyers aren’t and present cryptoasset owners
with a complaint about a cryptoasset
sure where service provider, 30 per cent of past responded either that they don’t
to go with a and present cryptoasset owners said know who regulates ICOs or that
complaint or they wouldn’t know where they would they believe ICOs are not subject to
go for help, and others split evenly regulation.
who regulates
between the various organizations This belief is incorrect. The OSC
ICOs listed. This may indicate that, to regulates ICOs that constitute
the extent cryptoasset buyers have securities offerings. As part of its
complaints about their experiences mandate, in June 2018, the Canadian
with different cryptoasset service Securities Administrators (CSA),
providers, these complaints may be of which the OSC is a member,
diffused among different agencies. published CSA Staff Notice 46-
INVESTOR OFFICE 5
Who respondents believe regulates ICOs
Ontarians overall Current/past cryptoasset owners Ontarians overall
3% 7%
% 3% 12% 67%
3% 29%
4% 14%
11% 18%
3%21%
12% 1% 4%
3%
3%14%
11% 4% 10%
18%3%
21%12% 1%3%3%
4%
10%
3%14%
11%4% 10%
18%
2% 3%
7%
21
Don’t know ICOs are Ontario Securities Financial Services Consumer Protection
unregulated
Ontarians overall
Commission
Current/past cryptoasset owners
Commission of Ontario
Ontarians
Ontariansoverall
overall Current/past
Current/pastcryptoasset
cryptoassetowners
owners Ontario Ontarians
All respondents
Ontarians overall who had
Current/past cryptoasset owners
heard of cryptoassets
before taking this survey
overall Current/pastcryptoasset
Current/past cryptoassetowners
owners
% 14%
4%
4% 18% 18%
18% 21% 21%
21% 1% 1% 3%
1% 3%
3% 3% 11%
4% 4% 10%3% 12% 3%
4% 10%
10% 3%4%10%
3% 10%
10% 14% 2% 2% 21%
2% 18%
7%
7% 7% 1% 3%3% 3%4%
3% 7%
7% 7% 10
What do we Prior research in Canada and the U.S., that the asset’s price tended to follow
including a short survey published by a more extreme boom-bust pattern
know about the OSC Investor Office in December when all of the “traders” were men.6
the people 2017, indicates that cryptoasset own- Stories about individuals reaping
who own ers tend to be young and male. One outsized returns from speculating in
U.S. study found that men are more
cryptoassets? than twice as likely as women to own
cryptoassets dominated headlines in
late 2017, but speculation is not the
cryptoassets.5 only reason why individuals purchase
It has been suggested that the fact and use cryptoassets. Some are skep-
that cryptoasset owners tend to be tical of traditional financial services
male may help explain significant and seeking an alternative, and others
fluctuations in cryptoasset prices. Re- are using them to pay for goods and
searchers carrying out “bubble exper- services. Many start-ups and other
iments,” in which participants play a businesses are using cryptoassets to
game in which they trade a hypotheti- raise capital.
cal asset with no intrinsic value, found
INVESTOR OFFICE 7
Alternative to traditional study found that 97 per cent of all
bitcoins are held by 4 per cent of dig-
financial services ital wallet addresses, noting that this
Cryptoassets began to emerge in the concentration of ownership impedes
wake of the global financial crisis, with their use as a payment mechanism by
Bitcoin launching in 2009, and vari- restricting their flow and availability.9
ous “Altcoins” (digital coins meant as Some entities stopped accepting dig-
alternatives to Bitcoin) emerging be- ital coins as a form of payment in 2017
ginning in 2011. Early adopters, who because of their price volatility.10
tended to be younger, tech-savvy
users alienated by traditional financial Speculation
services, were attracted to the notion Media headlines, coupled with indi-
of having a store of value not gov- cations that the financial sector was
erned by any central authority. As one beginning to regard cryptoassets as
early adopter put it: a legitimate asset class, including the
launch of Bitcoin futures on two U.S.
As a millennial, I personally put
derivatives exchanges in December
much greater faith in scarce digi- 2017, likely amplified individuals’
tal assets that are determined by interest in speculating in cryptoassets
math and auditable code, rather over the course of late 2017.11
than a group of bankers at the Cryptoasset trading platforms fa-
[U.S.] Federal Reserve.7 cilitate speculation by allowing for
cryptoassets’ rapid purchase and sale.
Payment mechanism But because purchases and sales that
While Bitcoin and other digital coins occur within a trading platform do not
are often associated with “dark web” take place on a blockchain—rather,
networks and ransomware, the num- platforms typically keep internal, cen-
ber of legitimate payment uses for tralized records of their users’ cryp-
digital coins is growing. As of the toasset holdings—trading platforms
date of this report, Canadians could are an attractive target for hackers.
use them to pay online for flights For example, the Japan-based Mt.
and hotel bookings, as well as for Gox was the world’s leading Bitcoin
furniture, movies, music, games, and trading platform until it filed for bank-
apps, among other items. A small, but ruptcy in 2014, reporting that it had
growing, number of Canadian stores, lost almost 750,000 of its customers’
largely in urban areas, also allow for bitcoins due to hacking.12
payment in digital coins on premises. In 2017, trading platforms also strug-
Some charities also accept donations gled to deal with a massive influx of
in digital coins.8 customers hoping to make money
That being said, the holding and trad- by trading cryptoassets, with many
ing of digital coins as a speculative customers reporting significant delays
asset has undermined their usefulness setting up accounts and withdrawing
as a payment mechanism. A 2017 cash from these platforms.13
Total 908
Failed or showing
signs of failure 142 276 113
Failed post-ICO
INVESTOR OFFICE 9
Cryptoassets Regulators’ focus on cryptoassets in- cryptoasset fraudsters in the first two
tensified in 2017. In August 2017, the months of 2018 alone—approximately
and consumer CSA issued a Staff Notice highlighting US$9 million a day.23 A recent inves-
protection that many ICOs, digital tokens, and tigation by the Wall Street Journal of
cryptoasset trading platforms may be 1,450 purported ICOs found that 271
subject to securities laws, and that the of these offerings—nearly 1 in 5—dis-
cryptoasset sector raises investor pro- played red flags of fraud, including
tection concerns relating to “volatility, “plagiarized investor documents,
transparency, valuation, custody and promises of guaranteed returns and
liquidity,” the risk of harm from “un- missing or fake executive teams.”24
ethical practices or illegal schemes,” This period also saw a series of cyber-
and the risk that purchasers may not attacks and other problems affecting
understand the nature of the products different players in the cryptoasset
they are purchasing.20 Regulators in market. One report found that more
other jurisdictions, including the U.S. than 10 per cent of total ICO proceeds
Securities and Exchange Commission are lost as a result of cyberattacks.25
(“SEC”), issued similar warnings.21 The day after Bitcoin hit its peak price
(December 18, 2017),26 the owners of
Alleged cryptoasset fraud,
a major South Korean trading platform
January-February 2018
filed for bankruptcy, disclosing that a
cyberattack resulted in the loss of 17
US$1.4 billion per cent of its assets.27 Early 2018 saw
(equivalent to allegations of price manipulation on
US$9 million a day) major trading platforms, as well as the
theft of over US$500 million from a
Late 2017 and early 2018 also saw Japanese trading platform.28
countless fraudsters enter the cryp-
Shortly after Bitcoin futures contracts
toasset market, selling unsuspecting
began trading in the United States
individuals a variety of worthless
in December 2017, the CSA issued
“crypto”-branded products tied to
an investor alert reminding investors
fake businesses or fake assets, includ-
of the inherent risks associated with
ing real estate, gold, and diamonds.22
cryptoasset futures contracts due to,
This trend has continued into 2018,
among other factors, volatility in un-
with US$1.4 billion worth of various
derlying cryptoasset markets.29
cryptoassets allegedly having been
stolen by digital token and other
INVESTOR OFFICE 11
METHODOLOGY
Survey Innovative conducted the survey The survey sample has been weight-
background online among a sample of 2,667 On- ed down to n=1,000 by age, gender
tarians aged 18 or older, including an and region using the latest Statistics
oversample of 1,506 men aged 18-34. Canada Census data to reflect the ac-
This group was oversampled because tual demographic composition of the
of its higher expected propensity, adult population residing in Ontario.
based on prior research, to own cryp-
toassets compared to the rest of the Since the online survey was not a ran-
public. The oversample was intended dom probability-based sample, a mar-
to capture a better understanding of gin of error cannot be calculated. The
the characteristics and motivations of Marketing Research and Intelligence
cryptoasset owners. The survey was in Association prohibits statements
field between March 14 and 22, 2018. about margins of sampling error or
population estimates with regard to
Because “cryptocurrency” is a more most online panels.
widely recognized term than “cryp-
toasset,” the survey questions asked Note: Graphs may not always total
respondents about “cryptocurren- 100 per cent due to rounding values
cies” rather than “cryptoassets.” This rather than any error in data. Sums are
report, however, uses the term “cryp- added before rounding numbers.
toassets,” because it more accurately
reflects the variety of ways in which
people use cryptoassets, including for
speculation and to access products or
services offered by a business.
Bitcoin 63%
Ether 35%
Litecoin 18%
Bitcoin Cash 17%
Ripple 13%
Dogecoin 10%
Dash 7%
Stellar 3%
Other 7%
INVESTOR OFFICE 13
Money spent acquiring cryptoassets
Didn’t spend money on $10K to
the cryptoassets they own <$20K
$5K to
Spent under $1K $1K to <$5K <$10K
13% 38% 25% 5% 4%
15%
Don’t know (1 per cent) not shown. $20K+
This figure includes 13 per cent who As would be expected, many current
reported not spending any money cryptoasset owners are recent pur-
on the cryptoassets they own—these chasers, with 35 per cent reporting
individuals may include cryptoasset that they first acquired a cryptoasset
miners and participants in ICOs who within the three months prior to being
received digital tokens for free.37 surveyed, and a further 37 per cent
reporting that they purchased some-
While the percentage of cryptoasset time in the prior 12 months.
owners who report spending $10,000
or more acquiring cryptoassets is Most past and present cryptoasset
relatively small (9 per cent, or about owners reported using cash savings to
0.45 per cent of Ontario’s overall pop- buy the cryptoassets they own. Out of
ulation), this still translates into about those who reported buying cryptoas-
50,000 Ontarians risking significant sets on credit, 70 per cent report that
sums on cryptoassets. they have paid back the full amount
owed, with a further 27 per cent
reporting that they have paid some of
the money back.
Don’t know (5 per cent) not shown. Don’t know (1 per cent) not shown.
Within the past 3 months Within the past year Over a year ago
35% 37% 27%
Don’t know (1 per cent) not shown.
Reasons Past and present cryptoasset owners to use them as a medium of exchange.
reported acquiring cryptoassets for a One in four said they acquired cryp-
for owning variety of reasons. toassets so that they can make pay-
cryptoassets ments anonymously, 23 per cent said
Enthusiasm for technology they acquired cryptoassets to make
payments in Canada or the U.S., and
The top reason past and present own- 14 per cent acquired them to make in-
ers reported for holding a cryptoasset ternational payments or remittances.
was interest in new technologies (46
per cent); 18 per cent cited blockchain Many also reported using cryptoas-
technology’s potential to prevent loss sets to pay for goods or services, with
and fraud. 23 per cent describing types of goods
or services that they paid for using
Speculation cryptoassets.38 Respondents report-
The second most common reason ed purchasing consumer products,
given was to sell at a higher price later collectables, consumption goods,
(42 per cent). Many current cryptoas- digital and online services, and com-
set owners closely track the prices puter equipment and software using
of cryptoassets on various trading cryptoassets.
platforms, with 36 per cent reporting
that they traded cryptoassets daily or Low trust in institutions
weekly over the 12 months prior to A minority (12 per cent) said they
being surveyed. acquired cryptoassets because they
don’t trust banks, with 11 per cent also
Medium of exchange reporting that they own cryptoassets
because they don’t trust the govern-
Many past and present cryptoasset ment.
owners reported buying cryptoassets
INVESTOR OFFICE 15
Reasons for Most Ontarians who have never owned cryptoassets reported that they don’t own
not owning a cryptoassets because they don’t understand or know enough about them.
Other 2%
Don’t know (8 per cent) not shown.
Acquisition Past and present cryptoasset owners a substantial number reported hold-
report acquiring cryptoassets through ing accounts with platforms based in
channels a variety of channels. The most com- Asia and Europe, reflected in the chart
mon means of acquiring cryptoassets below.39 Almost half (46 per cent)
is through a cryptoasset trading plat- of trading platform users reported
form, though a substantial number holding accounts with more than one
also acquired cryptoassets through platform.
mining. Sixteen per cent reported
acquiring digital tokens in an ICO. Many trading platform users reported
encountering an issue with using at
Cryptoasset trading least one of the platforms they use,
with a halt in trading and inability to
platforms withdraw money when they wanted it
Most trading platform users reported being the most common issues re-
holding an account with a platform ported.
based in the U.S. or Canada, though
9% 4% 20%
I couldn’t reach anyone Other No issues/don’t know
when I had a question or
complaint.
INVESTOR OFFICE 17
Ontarians who were How Ontarians were approached
approached or sought about/sought information about ICOs
information about an ICO
Social media (e.g., Twitter, 39%
Facebook, LinkedIn)
Friend or family 33%
Online ad 31%
12% 25%
Email 30%
Online message boards
(e.g., Slack, Reddit) 26%
Overall Men 18-34
Conference or trade show 10%
Instant messaging 10%
(e.g., WhatsApp, Telegram)
Radio ad 8%
21% 18%
Phone 7%
Other 2%
Men 35-54 Torontonians Don’t know (2 per cent) not shown.
Information We asked past and present cryptoas- Only 31 per cent reported having to
set owners what personal information provide their home address, and 29
requested by they had to provide to their cryptoas- per cent reported having to show
cryptoasset set issuer(s) or platform(s), and the re- government-issued identification.
sponses indicate that the information
providers and collection processes used by different The sample proved too small for any
platforms issuers and platforms are less than reliable segmentation of responses
consistent. based on the cryptoasset issuers or
platforms respondents used.
A majority of past and present cryp-
toasset owners reported having to
provide their email address (56 per
cent) or full name (52 per cent).
About 4 in 5 (82 per cent) respon- Bitcoin was by far the most recog-
dents reported having some familiar- nized cryptoasset, with 81 per cent of
ity with “cryptocurrencies,” though respondents reporting having heard
only 5 per cent identified themselves of it. Rounding out the top four most
as familiar enough to explain the de- recognized cryptoassets were Bitcoin
tails to others. Cash, Litecoin, and Ether.
All Bitcoin transactions are recorded on a distribut- 16% 36% 64% 34%
ed ledger that is publicly accessible (TRUE).
Bitcoin transactions take place instantaneously 30% 22% 63% 35%
(FALSE).
INVESTOR OFFICE 19
statements as true or false, and only A surprising number of cryptoas-
3 per cent received a perfect score. set owners (16 per cent) incorrectly
Knowledge levels were higher among agreed with the statement that “Bit-
cryptoasset owners, however, with 15 coin is backed by the government.”
per cent receiving a perfect score and The Bank of Canada study referred
72 per cent correctly identifying four to above found a similar result when
or more of the six statements. testing the statement “Bitcoin is simi-
lar to other national currencies … that
Roughly half of respondents did not are backed by the government.”41 The
complete this question, either be- study’s authors speculated that re-
cause they had not heard of Bitcoin or spondents may have misunderstood
other cryptoassets before this survey, the question, and that a clearer state-
or because they felt they weren’t ment reading “Is Bitcoin backed by
familiar enough with Bitcoin to com- a government?” might have yielded
plete the question. Cryptoasset a greater share of correct answers.42
owners tended to feel more confident This change in phrasing, adopted for
responding to this question, with only this survey, does not appear to have
2 per cent opting out. had this effect.
Cryptoasset The survey asked past and present vider. The results indicate that there is
cryptoasset owners where they would no clear consensus as to which regu-
complaints go for help if they had a problem lator cryptoasset buyers would go to,
and involving the cryptoassets they hold and accordingly that consumer com-
regulation or used to hold, and couldn’t resolve plaints may be being spread out over
it by talking to their cryptoasset issuer, a number of different agencies.
trading platform, or other service pro-
Local MP or MPP 9%
Office of the Superintendent 9%
of Financial Institutions
Other 7%
18%
ICOs are unregulated.
21%
Ontario Securities 4%
Commission 14%
Financial Services 3%
Commission of Ontario 12%
3%
Consumer Protection Ontario
11%
Bank of Canada 4%
10%
Financial Consumer 3%
Agency of Canada 10%
Office of the Superintendent 2%
of Financial Institutions 7%
1%
Other
3%
All respondents who had heard of cryptoassets before taking this survey
INVESTOR OFFICE 21
CONCLUSION
Most people The survey findings suggest most The OSC and other securities regu-
Ontarians are approaching cryptoas- latory authorities have emphasized
are taking sets with caution. A relatively small the significant risks associated with
caution—but percentage of Ontarians owns cryp- cryptoassets, and the Investor Office
not everyone. toassets, and those who do tend to has developed several educational re-
spend relatively small amounts buying sources on GetSmarterAboutMoney.
them and fund their purchases with ca/crypto on the characteristics and
cash savings rather than debt. The risks of different types of cryptoassets.
reasons cryptoasset owners gave for The survey results indicate that, while
purchasing cryptoassets also suggest many Ontarians are aware of and have
that many are entering the sector some knowledge of cryptoassets,
largely out of curiosity, or interest in there remains a need for education-
cryptoassets’ practical use as a pay- al materials on this rapidly evolving
ment mechanism, rather than as a way sector.
to get rich quick.
While cryptoassets come with signif-
This does not hold true for everyone, icant risks, the OSC recognizes the
though. Nearly half of past and pres- potential for innovative capital raising
ent cryptoasset owners bought cryp- and different applications of block-
toassets to make a profit, and about chain technology to increase transpar-
1 in 10 current cryptoasset owners encies and efficiencies in the capital
spent $10,000 or more acquiring markets, and remains committed to
cryptoassets. In addition, 29 per engaging with fintech businesses
cent of past and present cryptoasset through OSC LaunchPad.
owners who borrowed money to buy
cryptoassets still owe some or all of As noted above, the CSA has issued
the money they borrowed. new guidance for businesses looking
to offer digital tokens and to help
While each of these groups rep- these businesses navigate securities
resents a small percentage of Ontar- law requirements.
ians overall, they nonetheless collec-
tively translate into tens of thousands That more than 1 in 10 Ontarians have
of Ontarians taking significant, highly been approached about, or sought
risky bets on cryptoassets—bets that information about, an ICO underlines
may have a substantial impact on their the importance of continued regulato-
financial wellbeing. ry focus on this area, especially given
INVESTOR OFFICE 23
NOTES
1. The adult population of Ontario was 11,490,799 as of July 2017. Statistics Canada, Table 17-10-0005-01, Population estimates on July
1st, by age and sex (13 June 2018), https://bit.ly/2afMALX.
2. CSA Staff Notice 46-308, Securities Law Implications of Token Offerings (2018), 41 O.S.C.B. 4685, https://bit.ly/2tzLt3C.
3. “Funding” an account means transferring cash or cryptoassets into a trading platform account.
4. Bitcoin and other cryptoassets offered to financial consumers typically do not rely on a central authority to validate transactions.
However, it is possible to design a “private” blockchain network where participants need to obtain an invitation or permission from a
central authority to participate. See Justin O’Connell, “What Are the Use Cases for Private Blockchains? The Experts Weigh In,” Bitcoin
Magazine (20 June 2016), https://bit.ly/2lhlPuC.
5. OSC Investor Office, Ontarians and Cryptocurrencies: A First Look (2017), https://bit.ly/2s8TfzS; Finder, Why haven’t we all
bought cryptocurrency yet? (2018), https://bit.ly/2IL4c1D.
6. Catherine C. Eckel and Sasha C. Füllbrunn, “Thar SHE Blows? Gender, Competition, and Bubbles in Experimental Asset Markets,”
105(2) American Economic Review 906 (2015). This dynamic may depend on culture—one study applying the bubble experiment
in China found that asset prices followed a boom-bust pattern regardless of whether it was being traded by men or women. Jianxin
Wang, Daniel Houser, and Hui Xu, “Do Females Always Generate Small Bubbles? Experimental Evidence from U.S. and China” (GMU
Working Paper in Economics No. 17-30, 2017), https://bit.ly/2GM4kMN.
7. Rachel Wolfson, “Millennials Speak Out About Investing in Cryptocurrencies For Retirement Funds,” Forbes (28 March 2018),
https://bit.ly/2s9SmIj.
8. For a directory listing stores that self-report as accepting cryptoassets, see Coinmap2.0, http://coinmap.org/. For general
information on vendors accepting cryptoassets, see Noelle Acheson, “What Can You Buy with Bitcoin?,” Coindesk (20 January 2018),
https://bit.ly/2IOP6Zk; Tim Sandle, “The rise of cryptocurrency as an acceptable means of payment,” Digital Journal (20 October
2017), https://bit.ly/2GOAF5Bl; “The search for peak Bitcoin continues as KFC Canada briefly accepts currency,” Financial Post (12
January 2018), https://bit.ly/2kpbVrH.
9. Frank Chaparro, “97% of all bitcoins are held by 4% of addresses,” Business Insider (11 January 2018), https://read.bi/2GOjfpQ.
10. “Steam stops accepting payments in bitcoins,” BBC News (7 December 2017), https://bbc.in/2j57dlY.
11. “Bitcoin Futures Trading Brings Crypto Into Mainstream Finance,” Fortune (9 December 2017), https://for.tn/2APO7H2.
12. Yoshifumi Takemoto and Sophie Knight, “Mt. Gox files for bankruptcy, hit with lawsuit,” Reuters (28 February 2014), https://reut.
rs/2GYjIWp. Mt. Gox reported locating approximately 200,000 of the missing bitcoins some months later, but concluded that the
remaining bitcoins had been stolen. “MtGox finds 200,000 missing bitcoins in old wallet,” BBC News (21 March 2014), https://bbc.
in/1d6a8Ro.
13. Frank Chaparro, “Some of the biggest crypto exchanges are shutting out new users because they can’t keep up with demand,”
Business Insider (27 December 2017), https://read.bi/2Cl5cK3.
14. Fabric Ventures and Token Data, The State of the Token Market: A Year in Review & an Outlook for 2018 (2017), at pp. 4, 9, https://
bit.ly/2I1novZ.
15. Coinschedule, “Cryptocurrency ICO Stats 2018,” https://www.coinschedule.com/stats.html.
16. CSA, “CSA Regulatory Sandbox—Decisions,” https://bit.ly/2LBUf8P.
17. Kai Sedgwick, “46% of Last Year’s ICOs Have Failed Already,” Bitcoin.com (23 February 2018), https://bit.ly/2sVpgzp.
18. Ibid.
19. Fabric Ventures and Token Data, note 14 above, at p. 7.
20. CSA Staff Notice 46-307, Cryptocurrency Offerings (2017), 40 O.S.C.B. 7231, https://bit.ly/2kFsdQl.
21. SEC, “Spotlight on Initial Coin Offerings and Digital Assets,” https://bit.ly/2o2OiHM.
INVESTOR OFFICE 25
If you have any questions or comments about this
report, please contact:
Tyler Fleming
Director
Investor Office
tfleming@osc.gov.on.ca
416-593-8092
Doug Sarro
Senior Advisor, Research and Regulatory Innovation
Investor Office
dsarro@osc.gov.on.ca
416-597-7236