APX Lending secures CSA approval for crypto-backed loans

APX Lending has received exemptive relief from the Canadian Securities Administration (CSA), allowing the company to offer crypto-backed loans without requiring traditional dealer registration or prospectus filings.

The approval follows a two-year collaborative effort with the Ontario Securities Commission (OSC) to develop a regulatory framework specific to APX’s operations.

The platform currently supports Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) as collateral for loans denominated in Canadian or U.S. dollars.

Loan terms range from three months to five years, with loan-to-value (LTV) ratios between 20% and 60%.

An automated liquidation mechanism is triggered if LTV reaches 90%, ensuring risk management for both borrowers and the platform.

Andrei Poliakov, founder and CEO of APX Lending, emphasised the importance of regulatory compliance in advancing crypto-backed lending.

“By engaging with Canadian regulators and leading the way in Canada, we are setting a new benchmark for compliance and security,” Poliakov stated.

He added that APX’s model helps borrowers unlock liquidity while retaining ownership of their digital assets.

While this exemption applies exclusively to APX Lending, it does not set a precedent for other companies.

The firm plans to expand its operations into the United States, Australia, and New Zealand, pending regulatory approvals.

APX Lending is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and competes with local players such as Ledn, Nexo, and YouHodler.

Unlike traditional financial systems, APX offers more flexible lending structures tailored to the needs of retail and institutional borrowers.

The exemptive relief comes at a time of shifting political dynamics in Canada.

Prime Minister Mark Carney’s critical stance on Bitcoin raises uncertainty about future crypto regulations.

However, Carney’s platform includes goals to position Canada as a leader in emerging technologies like artificial intelligence and digital industries.