APX Lending Secures Exemption for Crypto-Backed Loans in Canada

According to Cointelegraph, APX Lending, a company specializing in crypto-backed loans, has received exemptive relief from the Canadian Securities Administration (CSA). This allows the firm to offer loans backed by cryptocurrencies without the need for traditional dealer registration or prospectus filings. Over the past two years, APX has collaborated with the Ontario Securities Commission (OSC) to develop a regulatory framework, as no such framework previously existed in Canada. This exemption is specific to APX and does not set a precedent for other companies. APX Lending currently supports Bitcoin (BTC) and Ether (ETH) as collateral for loans in Canadian or US dollars, with terms ranging from three months to five years. The company plans to expand its offerings by including more digital assets and fiat currencies in the future. APX is also looking to extend its services to the United States, with further expansions into Australia and New Zealand contingent on regulatory approval. Andrei Poliakov, the founder and CEO of APX Lending, emphasized the company's commitment to compliance and security in crypto-backed lending, aiming to help both retail and institutional borrowers unlock liquidity while retaining ownership of their digital assets. The loans offered by APX range from 20% to 60% loan-to-value (LTV), with an automated liquidation mechanism that activates at 90% if borrowers do not take corrective action when the LTV reaches the 80% warning level. Borrowers are notified of potential liquidation, allowing them to top up collateral or partially repay the loan. This flexible structure of crypto-backed lending contrasts with the more rigid options available in traditional financial systems. APX Lending is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and its main competitors in the local market include Ledn, Nexo, and YouHodler. The political landscape in Canada is shifting, which could impact crypto regulations. The recently elected Canadian Prime Minister, Mark Carney, a former central banker, has previously criticized Bitcoin for its capped supply, describing it as a 'serious deficiency.' In a 2018 speech, Carney expressed concerns about recreating a virtual global gold standard. His critical stance on Bitcoin and cryptocurrencies may influence future regulatory directions in Canada, creating uncertainty for the country's crypto industry. Despite this, Carney's 2025 platform aims to position Canada as a leader in emerging technologies, including artificial intelligence and digital industries, amid growing geopolitical competition and trade tensions with the United States.