“What’s even more important, given the most recent concerns, is that the assets of the funds have been done in the best possible structure. They are public funds that have been approved by the Ontario Securities Commission, which is the main regulator for investment funds in Canada. They have the same regulatory requirements for custody structured funds as any other funds.”
Tasevski said the regulator governs who Purpose can partner with and what structure it can use.
“So, something like what FTX did would never be an option for us,” he said. “What happened with FTX was that it was unregulated. It was offshore, and it had no governance.”
Tasevski said both the Gemini Trust Company, registered in New York, and Purpose must follow strict U.S. and Canadian regulations. In Purpose’s case, that means it can only hold the assets in the fund’s name and never lend them out. The legal agreement between Purpose and Gemini also specifies that only Purpose, not Gemini, can touch the funds and these can only be removed from the cold wallet when they’re redeemed. Ernst and Young also audits Purpose’s fund.
“It is very, very simple, but very, very clear,” he said. “What FTX did, we have never done, never tried to do, and we will never do. We have to meet all the same requirements of every single service provider that we work with.
