APX Lending Receives Exemptive Relief from Canadian Securities Regulators

APX Lending, a pioneering innovator in crypto-backed lending, has secured exemptive relief from the Canadian Securities Administrators (CSA). This significant development allows APX to provide its innovative crypto-backed loan services without the typical requirements of traditional dealer registration or prospectus filings.

In a statement to the press, an APX spokesperson highlighted the company’s proactive collaboration with the Ontario Securities Commission (OSC) over the past two years. This collaboration was instrumental in establishing a regulatory framework for crypto-backed lending—a previously uncharted territory in Canada. The spokesperson emphasized that this exemption is unique to APX and does not set a precedent for other firms operating in the sector.

Currently, APX offers loans backed by Bitcoin (BTC) and Ether (ETH), providing borrowers access to Canadian or US dollar funding with flexible terms ranging from three months to five years. The company’s roadmap includes expanding its supported digital assets and fiat currency options.

APX Lending’s growth trajectory extends beyond Canadian borders. The company is actively expanding its operations into the United States, with future plans to enter the Australian and New Zealand markets pending regulatory approvals. Andrei Poliakov, the founder and CEO of APX Lending, expressed his vision in a recent statement:

\”By engaging constructively with Canadian regulators and establishing this benchmark for compliance and security, we are empowering retail and institutional borrowers to unlock liquidity while maintaining ownership of their digital assets.\”

APX loans provide loan-to-value (LTV) ratios ranging from 20% to 60%. A sophisticated automated liquidation mechanism is in place, triggered at the 90% LTV threshold if the borrower fails to take corrective action, such as adding collateral or making partial repayments, after receiving a warning notification at 80% LTV.

The flexible loan terms, ranging from three to five years, represent a key differentiator compared to traditional lending options. This added flexibility caters to the unique characteristics of the crypto market.

APX Lending maintains registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Key competitors in the Canadian crypto-lending market include Ledn, Nexo, and YouHodler.

Related: What Canada’s new Liberal PM Mark Carney means for crypto