Canadian blockchain company Cypherpunk Holdings has rebranded, adopting the new name Sol Strategies as it focuses its investment strategy on Solana.

The Toronto-based firm announced on Sept. 12 that Sol Strategies reflects its decision to invest in Solana (SOL), including through staking and projects built on the blockchain network.

Cypherpunk Holdings, now Sol Strategies, launched its operations in 2018 and is publicly listed on the Canadian Securities Exchange. The company also trades on the OTC market.

Cypherpunk Holdings among first publicly-traded companies to hold Bitcoin

Sol Strategies is among the first publicly-traded companies to invest in Bitcoin (BTC). The bear market however saw Cypherpunk Holdings liquidate its BTC and ETH holdings.

Its business also involved venture capital and private equity investments, with these milestones achieved at a time when the crypto space had no exchange-traded funds.  

With the board of directors and shareholders approving the rebrand on July 30, 2024, the main focus will now be on the Solana ecosystem.

Leah Wald, chief executive officer of Sol Strategies, noted in a statement that the pivot will allow the company to capitalize on Solana’s growth potential.

“Transitioning to Sol Strategies signifies our strategic evolution for the Company as we focus on unlocking Solana for public markets and driving value for our shareholders.”

Leah Wald, CEO, Sol Strategies

Sol Strategies Solana holdings

Sol Strategies, formerly Cypherpunk Holdings, appointed Leah Wald as its chief executive and president in July 2024. Wald is a crypto industry veteran whose experience includes serving as the former CEO of digital asset management firm Valkyrie.

The company’s SOL holdings have increased significantly since Wald’s appointment and after the shareholder vote to rebrand. Notably, the firm held no Solana as of March 31, 2024.

By July 16, it held over 63,000 SOL in Coinbase custody, which increased to over 86,290 SOL by July 31, 2024.

According to the latest update at the end of July, Sol Strategies acquired its Solana at an average price of $143. SOL currently trades around $135, struggling for upside since dropping from above $200 in April.

Canada’s regulators have provided the CTPs with a deadline to complete their applications for Investment Dealer status and membership with Canadian Investment Regulatory Organization (CIRO).

This push comes at the end of the previously allowed transitional period when Canadian crypto trading platforms (CTPs) are expected to meet established financial regulatory standards.

Deadline Approaches for Canada Crypto Exchanges

With the CIRO membership deadline fast approaching Canadian CTPs are rushing to ensure that their business practices meet with the necessary legal standards. The CSA and CIRO have recently sent out reminders to these platforms noting the need to move from being restricted dealers to fully recognized investment dealers.

This is of paramount importance for CTPs as they will preserve their legal status in the context of the financial market of Canada.

In a staff notice that was released in march 2021, it was made known that CTPs were given a temporary period of time within which they could offer their products while seeking for full authorization. 

Nevertheless, as stated by the CSA,

“Given the time that has elapsed, CSA members expect that CTPs would have thoroughly assessed and understood the requirements for registration as investment dealers and CIRO members and be working closely with CIRO on their applications.”

Regulatory Compliance Urged

This is not a new thing as more organizations are being forced to adhere to the set regulations. Formerly, the CSA and CIRO have given some recommendations and have also offered an interim measure which gave some lenient stance on the operations of crypto exchanges. 

However, this approach is now being phased out with clear expectations set for CTPs to meet the full requirements of CIRO membership.

According to these provisions, some of the platforms have been compliant, for instance, Coinsquare has transitioned and had CIRO membership. Some other platforms, however, have decided to withdraw from the Canadian market instead of adhering to the strict rules, which also speaks to the heterogeneity of the industry’s approaches.

Next Steps for Crypto Exchanges

This move comes after a series of events that the Canadian authorities have taken to enhance the regulation of the market particularly after the occurrences that led to the collapse of many blockchain companies. 

This strong approach of CIRO and the CSA is to contribute to the creation of a safer and more controlled space for the Canada crypto investors.

CTPs are now expected to provide comprehensive application and prove their operational preparedness, financial fitness, and compliance with CIRO’s standards. Concurrently, CIRO has developed a Readiness Questionnaire to help platforms determine their level of readiness for the joining CIRO. This is part of the screening done by CIRO to make sure that the platforms that are admitted to the membership are capable and meet set legal requirements.

Read Also: Donald Trump’s Son Teases Big Announcement On Crypto

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.