On July 22, it was announced that a cryptocurrency company called Coin Launch had reached a preliminary settlement with Canada's Ontario Securities Commission. The settlement, though, is still subject to final approval, which will come after a public hearing on the matter on July 24.

Originally, the commission charged CoinLaunch with security violations relating to how the company was offering various cryptocurrency services. These services included offering to promote and market coin offerings, which included security tokens. The commission believed that the company did this without observing the rules that it had long established regarding the registration of such companies.

Katrina Gustafson, who is the senior litigation counsel for the commission's enforcement division, said that she believed CoinLaunch was engaging in (and promoting itself as engaging in) security trading. It did this, she alleged, without registering as they were required to do by Canadian security laws. She further added that there was no exception to the registration process that CoinLaunch could have taken advantage of.

While it was in operation, CoinLaunch worked with a number of token issuers. This included both ECOREAL and BCZERO. The commission determined that the offering of these two tokens were a form of an investment contract, and hence the tokens were themselves considered securities.

In addition to providing marketing and promoting services, CoinLaunch ran its own Ethereum-based smart contract platform. This allowed entities to issue ERC-20 tokens on Ethereum's blockchain.

Included in the allegations made by the commission was a statement that indicated that CoinLaunch was in the process of dissolving itself under Canadian law.

The Canadian government has recently taken a keen interest in the cryptocurrency industry. In its 2019-2022 roadmap, the Canadian Securities Regulatory Agency indicated that it was looking into various forms of industry regulation. Among these was the establishment of rules for companies that were engaged in digital currency custodial services as well as the establishment of rules relating to the funding of securities that are based on blockchain technology.