Canadian Bitcoin Law: All You Need to Know

FINTRAC Clarifies Canadian Bitcoin Regulations

FINTRAC Clarifies Canadian Bitcoin Regulations submitted by Brad-Edwards to BitcoinCA [link] [comments]

[FULL ANALYSIS] Bitcoin exchanges and payment processors in Canada are now regulated as Money Service Businesses

Hello Bitcoiners!
Many of you saw my tweet yesterday about the Bitcoin regulations in Canada. As usual, some journalists decided to write articles about my tweets without asking me for the full context :P Which means there has been a lot of misunderstanding. Particuarly, these regulations mean that we can lower the KYC requirements and no longer require ID documents or bank account connections! We can also increase the daily transaction limit from $3,000 per day to $10,000 per day for unverified accounts. The main difference is that we now have a $1,000 per-transaction limit (instead of per day) and we must report suspicious transactions. It's important to read about our reporting requirements, as it is the main difference since pretty much every exchange was doing KYC anyway.
Hopefully you appreciate the transparency, and I'm available for questions!
Cheers,
Francis
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Text below is copied from: https://medium.com/bull-bitcoin/bitcoin-exchanges-and-payment-processors-in-canada-are-now-regulated-as-money-service-businesses-1ca820575511

Bitcoin is money, regulated like money

Notice to Canadian Bitcoin users

If you are the user of a Canadian Bitcoin company, be assured that:
You may notice that the exchange service you are using has change its transactions limits or is now requiring more information from you.
You can stop reading this email now without any consequence! Otherwise, keep regarding if you are interested in my unique insights into this important topic!

Background on regulation

Today marks an important chapter for Bitcoin’s history in Canada: Bitcoin is officially regulated as money (virtual currency) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada (PCMLTFA), under the jurisdiction of the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC).
This is the culmination of 5 years of effort by numerous Bitcoin Canadian advocates collaborating with the Ministry of Finance, Fintrac and other Canadian government agencies.
It is important to note that there is no new Bitcoin law in Canada. In June of 2014, the Governor General of Canada (representing Her Majesty Queen Elizabeth II) gave royal asset to Bill C-31, voted by parliament under Stephen Harper’s Conservative government, which included amendments to the PCMLTFA to included Bitcoin companies (named “dealers in virtual currency”) as a category of Money Service Businesses.
Thereafter, FINTRAC engaged in the process of defining what exactly is meant by “dealing in virtual currency” and what particular rules would apply to the businesses in this category. Much of our work was centred around excluding things like non-custodial wallets, nodes, mining and other activities that were not related exchange or payments processing.
To give an idea, the other categories that apply to traditional fiat currency businesses are:
When we say that Bitcoin is now regulated, what we mean is that these questions have been settled, officially published, and that they are now legally binding.
Businesses that are deemed to be “dealing in virtual currency” must register with FINTRAC as a money service business, just like they would if they were doing traditional currency exchange or payment processing.
There is no “license” required, which means that you do not need the government’s approval before you can operate a Bitcoin exchange business. However, when you operate a Money Service Business, you must register and comply with the laws… otherwise you risk jail time and large fines.

What activities are regulated as Money Service Business activity?

A virtual currency exchange transaction is defined as: “an exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another.” This includes, but is not limited to:

Notice to foreign Bitcoin companies with clients in Canada

Regardless of whether or not your business is based in Canada, you must register with FINTRAC as a Foreign Money Service Business, if:

How this affects BullBitcoin.com and Bylls.com

The regulation of Bitcoin exchange and payment services has always been inevitable. If we want Bitcoin to be considered as money, we must accept that it will be regulated like other monies. Our stance on the regulation issue has always been that Bitcoin exchanges and payment processors should be regulated like fiat currency exchanges and payment processors, no more, no less. This is the outcome we obtained.
To comply with these regulations, we are implementing a few changes to our Know-Your-Customer requirement and transaction limits which may paradoxically make your experience using Bull Bitcoin and Bylls even more private and convenient!

The bad news

The good news

To understand these regulations, we highly recommend reading this summary by our good friends and partners at Outlier Compliance.

Summary of our obligations

Our responsibilities:
The information required to perform a compliant know-your-customer validation:
Record keeping obligations:

Suspicious transaction reporting

Satoshi Portal is required to make suspicious transactions report to FINTRAC after we have detected a fact that amounts to reasonable grounds to suspect that one of your transactions is related to the commission or attempted commission of a money laundering offence or a terrorist activity financing offence.
Failure by Satoshi Portal Inc. to report a suspicious transaction could lead to up to five years imprisonment, a fine of up to $2,000,000, or both, for its executives.
We are not allowed to share with anyone other than FINTRAC, including our clients, the contents of a suspicious transaction report as well as the fact that a suspicious transaction report has been filed.

What is suspicious activity?

Note for bitcoinca: this section applies ONLY to Bull Bitcoin. Most exchanges have much stricter interpretation of what is suspicious. You should operate under the assumption that using Coinjoin or TOR will get you flagged at some other exchanges even though it's okay for Bull Bitcoin. That is simply because we have a more sophisticated understanding of privacy best practices.
Identifying suspicious behavior is heavily dependent on the context of each transaction. We understand and take into account that for many of our customers, privacy and libertarian beliefs are of the utmost importance, and that some users may not know that the behavior they are engaging in is suspicious. When we are concerned or confused about the behaviors of our users, we endeavour to discuss it with them before jumping to conclusions.
In general, here are a few tips:
Here are some examples of behavior that we do not consider suspicious:
Here are some example indicators of behavior that would lead us to investigate whether or not a transaction is suspicious:

What does this mean for Bitcoin?

It was always standard practice for Bitcoin companies to operate under the assumption they would eventually be regulated and adopt policies and procedures as if they were already regulated. The same practices used for legal KYC were already commonplace to mitigate fraud (chargebacks).
In addition, law enforcement and other government agencies in Canada were already issuing subpoenas and information requests to Bitcoin companies to obtain the information of users that were under investigation.
We suspect that cash-based Bitcoin exchanges, whether Bitcoin ATMs, physical Bitcoin exchanges or Peer-to-Peer trading, will be the most affected since they will no longer be able to operate without KYC and the absence of KYC was the primary feature that allowed them to justify charging such high fees and exchange rate premiums.
One thing is certain, as of today, there is no ambiguity whatsoever that Bitcoin is 100% legal and regulated in Canada!
submitted by FrancisPouliot to BitcoinCA [link] [comments]

QUADRIGA 2.0 = COINBERRY?

TL;DR- A "Canadian" crypto exchange has been blowing off customers while their accounts and funds are frozen. Their company isn't trading in Canada, their PR hlooks grandiose but in fact isn't impressive at all, and they are now lying to customers about the reason for the delays.
FULL BREAKDOWN
Coinberry uses "trusted by the Canadian Government" as their main call-to-action and as leverage to gain your business due to their partnership with two municipalities (Richmond Hill and Innisfil township) Townships are NOT part of the Canadian Federal Government, they are municipalities. Municipalities are autonomous. The Canadian federal government and LOCAL government aren't the same thing, that is fraudulent representation.
The mayor of Innisfil has been known to accept gifts from companies trying to get in his favour. Only 5% of CANADIANS- not Innisfil residents, hold cryptocurrency. So, in a town of 36K people, where the majority of the population is 50+ in age, how many are likely to hold bitcoin? Coinberry is the only one benefiting from this; they get to say they've partnered with a township, and if anyone actually wanted to pay property tax in Bitcoin then they need to sign up with Coinberry.
The special information package tells Innisfil residents that "Coinberry has fully supportive, transparent and CDIC insured segregated banking in Canada (page 2/26) A quick Google search will tell you that's false - the CDIC does NOT cover digital currencies as of April 30th, 2020. The document linked stating this was made in 2019. How much did this mayor get paid to lie to his citizens?! I doubt he'd do it for free.
They leverage being PIPEDA compliant, yet all you need is a self assessment tool. It's based on opinion, yet it's their first selling point. It's a garbage selling point that gives false confidence to potential clients.
FINTRAC REGISTRY AND THEIR SHELL COMPANY IN MALTA
They claim to be the only FINTRAC registered company. Nope. A quick search of other crypto exchanges in the FINTRAC lookup proves that claim wrong: https://www10.fintrac-canafe.gc.ca/msb-esm/public/msb-search/search-by-name/
Their privacy policy mentions a parent company. Their parent company is listed on FINTRAC as CB INTERNATIONAL LIMITED, and is based in Malta. For those of you who aren't aware, Malta is well known for being the best place to set up shell companies in order to avoid taxes and protect CEOs from lawsuits after "their" money. This was NOT the case for Kraken, Newton or Shakepay. Only Coinberry feels they need a shell company in another country.
They have 4 companies listed, all Coinberry. All 4 listings show Coinberrys agent activities listed as money transferring, and 2 of them are listed as agents of CB INTERNATIONAL LIMITED (the parent company). This parent company is located in Malta and has listed its activities as foreign exchange and money transferring. This means all of the exchanges happening are actually happening in MALTA not Canada.
They seem to be the only exchange (with Canadian HQ) doing this: Kraken, Newton and Shakepay list their agent activities as foreign exchange dealing, and all are registered IN CANADA. This implies your money is also staying in Canada on their platforms.
Where there is smoke, there is fire.
edit: added a TL;DR, took out unnecessary sentences, cleaned up wording. I was pissed when I wrote this. I just want to see Coinberry suits come clean about the delays. Tell people why you can't get their money back as soon as you said you would, because this only making crypto even scarier for new adopters.
submitted by cosmicariel to Scams [link] [comments]

Liquid CAD: Canadian dollar payments on the Liquid Sidechain

Hello fellow Canadian bitcoiners or bitcoinca! You will find below all the information related to the launch of Liquid CAD and Bull Bitcoin's Liquid Bitcoin integration. I'll be checking comments here to answer your questions! I'm also posting some comments on my announcement tweet here: https://twitter.com/francispouliot\_/status/1245758698120605697?s=20

Making the Canadian Dollar Bleed Into Bitcoin

Building the infrastructure for the Bitcoin Standard in Canada before the collapse of fiat currencies is the critical mission objective that drives innovation at Bull Bitcoin.
We are very excited to announce an important milestone in fulfilling this duty: the public release of Liquid CAD, our newest product designed to accelerate and facilitate the adoption of Bitcoin.
Liquid CAD is a non-custodial prepaid payment system denominated in Canadian dollars. Units of Liquid CAD (L-CAD) consist of vouchers issued on the Liquid Network as confidential bearer assets that can be transacted peer-to-peer using a Liquid wallet.
Users acquire Liquid CAD by withdrawing their account balance out of Bull Bitcoin, by purchasing Liquid CAD with Bitcoin on Bull Bitcoin, by using the Liquid CAD withdrawal method on other Bitcoin liquidity providers such as Aquanow or by accepting L-CAD as method of payment.
L-CAD assets can only be redeemed for Bitcoin. They cannot be redeemed for a fiat currency payment.
Liquid CAD is a unique project rethinking the concept of fiat-pegged assets, avoiding the banking business model of “fiatcoin” (aka stablecoins) in favor of a prepaid payments model entirely centred around Bitcoin on-ramp and off-ramp. Liquid CAD is not a currency, nor is it a security: it is a prepaid card.
Importantly, the business model of Liquid CAD is not to collect interest on funds in our custody, unlike fiatcoins, but rather to drive the sales of Bitcoin from which we derive our revenue and we benefit from Liquid CAD assets being cashed out and thus removed from our balance sheet. Bull Bitcoin does not get any revenue from interest.
Every time an L-CAD token is purchased by a user, the amount of dollars deposited on Bull Bitcoin is guaranteed to one day be used by someone to purchase Bitcoin. It’s a one-way street: once a unit of fiat is tokenized as L-CAD, it’s never going back to its off-chain fiat form and will ultimately result in a buy order on a Bitcoin trading platform.
The Liquid CAD logo is a drop of blood because our objective is to accelerate “fiat bleed”, a phenomenon best described by Pierre Rochard in his magnificent essay Speculative Attack:
“Bitcoin will not be eagerly adopted by the mainstream, it will be forced upon them. Forced, as in “compelled by economic reality”. People will be forced to pay with bitcoins, not because of ‘the technology’, but because no one will accept their worthless fiat for payments. Contrary to popular belief, good money drives out bad. This “driving out” has started as a small fiat bleed. It will rapidly escalate into Class IV hemorrhaging due to speculative attacks on weak fiat currencies. The end result will be hyperbitcoinization, i.e. “your money is no good here. Bitcoins are not just good money, they are the best money. The Bitcoin network has the best monetary policy and the best brand. We should therefore expect that bitcoins will drive out bad, weak currencies. My own prediction is that slow bleed has been accelerating and is only the first step. The second step will be speculative attacks that use bitcoins as a platform. The third and final step will be hyperbitcoinization.”
Different representations of Canadian dollars compete to be used as payment methods (cash, bank balances, PayPal balances, closed-loop prepaid cards, open-loop prepaid cards, etc.) and that the winner will be the one that has the best Bitcoin saleability, i.e. which can be most easily sold for Bitcoin at a moment’s notice.
We’re very proud to provide this alternative payment method to Canadians in a time where the banking system is falling deeper into crisis, especially as the Canadian dollar is demonstrating itself to be one of the most pointless and weakest currencies that nobody really wants to hold.
Finally, we’re very happy to be partnering with Aquanow, our recommended institutional liquidity provider for high-volume BTC-CAD trading. They will accept Liquid CAD deposits and withdrawals as being interchangeable with Canadian dollars. We hope that Liquid CAD will become the standard representation of Canadian dollar value among Canadian Bitcoin users.

Liquid Bitcoin (L-BTC) integration

In addition to Liquid CAD, Bull Bitcoin is also announcing that Liquid Bitcoin (L-BTC) payments are now supported interchangeably with Bitcoin transactions for all Bull Bitcoin services. This means that our users can buy, sell and spend L-BTC instead of BTC.
Canadian Bitcoin traders can purchase L-BTC from BullBitcoin.com and fund their international trading accounts with L-BTC using ultra fast and cheap confidential transactions. They can also cash-out their Bitcoin balance as L-BTC from these platforms and sell those L-BTC for fiat on Bylls.com, avoiding risky and expensive international wire transfers to unknown and untrusted foreign banks.
The transactional benefits of L-BTC are very potent:
Disclaimer: Liquid Bitcoin (L-BTC) is not the same as Bitcoin (BTC). L-BTC Liquid Network assets are IOUs for Bitcoin held in a multisignature contract by the Liquid Network federation. The custody of the underlying Bitcoin is managed by a decentralized network of 15 members which process transactions and withdrawals from the multisignature contract according to the Liquid Federation protocol rules.

Liquid CAD detailed overview

Peer-to-peer prepaid payments by Bull Bitcoin

Liquid CAD is a non-custodial prepaid payment system denominated in Canadian dollars. Units of Liquid CAD (L-CAD) consist of vouchers issued on the Liquid Network as confidential bearer assets that can be transacted peer-to-peer using a Liquid wallet. Users acquire Liquid CAD by withdrawing their account balance out of the Bull Bitcoin, by purchasing Liquid CAD with Bitcoin on Bull Bitcoin, by using the Liquid CAD withdrawal method on other Bitcoin liquidity providers such as Aquanow or by accepting L-CAD as method of payment.

A new payment method in Canada

Liquid CAD can be used by anyone to send and receive payments denominated in Canadian dollars. Because of the permissionless nature of the Liquid Network, Bull Bitcoin cannot prevent Liquid CAD from being traded on secondary markets. Merchants, individuals and institutions must accept that only Bull Bitcoin can guarantee redemption of the L-CAD and that this redemption will be exclusively paid out in Bitcoin. Accepting Liquid CAD as payment is, in effect, the same as accepting gift cards as payment. However, Bitcoin being the most liquid commodity on the market, it can be transformed into any other currency easily for example using services such a Bylls which allow Canadians to pay all their utility bills, send bank transfers to third parties or sell Bitcoin to their bank account.

Making Canadian dollars bleed into Bitcoin

The purpose of Liquid CAD is to facilitate the transfer fiat in the context of the purchase and sale of Bitcoin and providing innovative new services that help Bitcoin users hedge the value of Canadian dollars against Bitcoin in the context of their commercial transactions. Our goal is to create a payment method that is specifically targeting Bitcoin users that wish to liquidate Canadian dollar payments for Bitcoin. Our mission is to accelerate the phenomenon known as “fiat bleed” whereby Canadians will gradually abandon inferior money (such as the Canadian dollar) for the superior Bitcoin alternative. Every Liquid CAD issued will ultimately be exchanged into Bitcoin. We are excited for the day Liquid CAD will be made obsolete by the inevitable hyperbitcoinization of the Canadian economy.

Regulation: is Liquid CAD a stablecoin?

Liquid CAD is not a general-purpose “stablecoin”. It is a closed-loop Bitcoin prepaid card. It can exclusively be redeemed for Bitcoin on the Bull Bitcoin platform (or at affiliated merchants). Bull Bitcoin is the only counterparty, and it cannot be redeemed for a canadian dollar payment. It is substantively the same as Canadian Tire money. Unlike stablecoins, Bull Bitcoin makes money with L-CAD by driving the sales of Bitcoin on its platform, and doesn’t collect interest on the deposits of Liquid CAD users.
The purchase of Liquid CAD with Canadian dollars is regulated in the Province of Quebec as a prepaid card under the Consumer Protection Act and the Regulation respecting the application of the Consumer Protection Act Consumer Protection Act which define a prepaid card as “a certificate, card or other medium of exchange that is paid in advance and allows the consumer to acquire goods or services from one or more merchants”.
The purchase of Bitcoin using Liquid CAD is regulated in Canada by the Financial Transactions and Reports Analysis Centre of Canada under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17).

Counterparty risk

Like all other closed-loop prepaid instruments, Liquid CAD has counterparty risk. The owners are trusting that they will eventually be able to use Liquid CAD as a payment method on the Bull Bitcoin platform to fund their account and purchase Bitcoin. When a Bull Bitcoin user withdraws his Bull Bitcoin account balance as an L-CAD token, the Canadian dollars he used to fund this balance remains in our possession in the same manner as regular Bull Bitcoin vouchers. These funds are used to execute Bitcoin purchases when L-CAD owners decide to redeem their L-CAD for Bitcoin. In essence, each L-CAD is “backed” by the Canadian dollar deposit of the user that withdraws it from the platform in the first place.

Benefits of using and accepting Liquid CAD for payments

Irreversible, non-custodial and no bank required

Liquid CAD payments cannot be charged back, cancelled, delayed or frozen. There is no intermediary between the sender and the recipient. It is a bearer asset: whoever owns the keys owns the coins. It is a perfect way to accept payments or transact securely without depending on banks and payment processors. Canadians can use Liquid CAD to purchase Bitcoin and then use Bylls.com to pay billers, personal payees or simply sell Bitcoin to their bank account.

Fast transaction and cheap fees

Liquid Network transactions are sent and received instantly and require 1 minute for settlement. Transaction fees paid using Liquid Bitcoin can be as low as 300 satoshis per transaction (a few cents). In order to benefit from these cheap fees, make sure to download the latest version of the Elements software and ensure that the minimum transaction fee is set at 100 satoshis per kilobye. It only takes a few minutes to set up a free Liquid Network wallet, such a Green Wallet by blockstream.

Confidential transactions

Unlike Bitcoin, transactions between the sender and the recipient are encrypted. It is impossible for third parties observing Liquid CAD transactions on a block explorer to determine the amount of the transaction. In addition, it’s also impossible to even know you are using Liquid CAD, since the data identifying the asset itself is also encrypted!

What are the use-cases of Liquid CAD?

Buying and selling Bitcoin

The primary use-case of Liquid CAD is to make it easier to buy and sell Bitcoin on the Bull Bitcoin platform. By withdrawing their balance from Bull Bitcoin, users are reducing some (but not all) of the custody risk associated with keeping fiat currency on an exchange. For example, use Liquid CAD to create your own non-custodial dollar-cost-averaging schedule!

Onboarding new Bitcoin users

New users can be overwhelmed by the experience of dealing with banks to buy Bitcoin (and the heavier KYC process of account funding). You may be tempted to buy Bitcoin for them, but that will impose a lot of burdens on you. It’s much easier to set them up with a Green wallet, send them Liquid CAD and show them how to use Bull Bitcoin! They decide when is the right time for them to invest, with a lower KYC burden.

Hedging Bitcoin price

You may believe the price of Bitcoin will go down in the short term, but you still want to hold Bitcoin in the long term. Normally you have two options: short the Bitcoin price (very risky!) or sell your Bitcoin and receive Canadian dollars in your bank account (inconvenient!). By selling your Bitcoin for Liquid CAD, you can lock in the value of Bitcoin right now and buy them back later without needing to use your bank account or taking risks with leverage.

Accepting payments

As a merchant, you want to receive the settlement of payments in Bitcoin. But this imposes a burden on your customers, which have to deal with the Bitcoin price volatility when they are paying you. Ask your clients to pay you with Liquid CAD, and you can get the settlement with Bitcoin on your own terms.

Payroll and suppliers

What if your staff or suppliers want to get paid in Bitcoin? It can be very difficult, because this means you are effectively buying Bitcoin on their behalf. Instead, you can pay them in Liquid CAD and let them deal with the process of choosing the exchange rate and using their own wallet. Let them deal with the tax burden, exchange rates and Bitcoin wallet security.

List of Bull Bitcoin Liquid Network features

Withdraw account balance as L-CAD

This is conceptually the same as “buying” Liquid CAD with your account balance. We call it “Withdrawing L-CAD” because on the Bull Bitcoin platform, we consider L-CAD and CAD to be interchangeable and fungible.

Fund account balance with L-CAD

To redeem Liquid CAD for Bitcoin, users need to first fund their account by selecting the “Deposit L-CAD” payment method. Bull Bitcoin users must always fund their account first before buying Bitcoin, and then purchase Bitcoin with their account balances. Reminder: account balances cannot be withdraw as fiat payments, but can later be withdrawn again as L-CAD.

Sell Bitcoin for L-CAD

You can sell Bitcoin and receive Liquid CAD payments instead of a bill payment, personal payee payment or bank payment. As soon as the Bitcoin transaction is confirmed, the Liquid CAD transaction is sent to the address you provided.

Liquid Bitcoin (L-BTC) and Bitcoin interchangeability

For every service which involves a Bitcoin payment, the user can substitute traditional Bitcoin payments for Liquid Bitcoin payments. This includes:
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Original medium post: https://medium.com/@francispouliot/liquid-cad-canadian-dollar-payments-on-the-liquid-sidechain-f7e3309f8a5f
Official landing page: lcad.bullbitcoin.com
Application page: bullbitcoin.com/l-cad
submitted by FrancisPouliot to BitcoinCA [link] [comments]

05-22 04:09 - 'Havent heard of Newton. But I recently got into cryptos and researched some options. [[link]] has been really good so far i made a couple of $100 deposits I have a bit of Bitcoin and Ethereum. / It's easy to use, keeps detai...' by /u/SoloTheFord removed from /r/Bitcoin within 2-12min

'''
Havent heard of Newton. But I recently got into cryptos and researched some options. [[link]2 has been really good so far i made a couple of $100 deposits I have a bit of Bitcoin and Ethereum.
It's easy to use, keeps detailed transactions for export on taxes, small fees. 95% cold storage and 2FA security via google or a code texted directly to your phone every-time you login. It seems really secure and is highly rated. If you use or share a referral code they deposit $20 into your account at the beginning of the next month if make a buy of at least $100 .(DM me if you sign up I will send you a referral.)
Also:
Very fast deposits they take etransfers and its maybe taken a couple hours at most for me.
fully regulated by Canadian federal authorities through their registration with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Services Business (MSB).
'''
Context Link
Go1dfish undelete link
unreddit undelete link
Author: SoloTheFord
1: bi**uy.ca/ 2: *itbuy*ca*]^*1
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

Thanks for the taxes. We don't give a fuck about your business

This is an all-too-familiar sentiment from government to Canada's startup (specifically bitcoin-startup) community.
On March 27th, 2020 the Prime Minister proudly announced a $40,000 government backed loan.
"For small businesses, there's a $40,000 loan of which $10,000 will not have to be repaid if they meet certain conditions. There are many things we're doing out there with low interest or no interest loans to help businesses get through this, but the wage subsidy and the Canada Emergency Response Benefit for people who lose their jobs are going to be there to make sure that we come through this strongly." ref
Prime Minister Justin Trudeau holds a news conference while in self-isolation at Rideau Cottage in Ottawa Friday, March 13, 2020. (Fred Chartrand/The Canadian Press)
I, like many small business owners, let out a sigh of relief as we have all seen revenues vanish over the previous weeks following the necessary public health measures put into place. That $40,000 meant one more payroll run. Maybe it made up for the payables or rent that was coming due in 4 days. A $40,000 injection of "worry-about-it-later" money would mean breathing room. The equivalent of a pool noodle while wading in the middle of the ocean. Enough to keep you thinking "you can do this".
Banking is hard to come by as a bitcoin/fintech startup. We are not "welcomed into the traditional banking atmosphere with open arms" regardless of our balance sheets or longevity. Even the bank for Alberta's Entrepreneurs (which promotes their "blockchain friendliness") refuses to work with businesses that touch cryptocurrency.
Hi Adam - hope all is well. What is wrong with the markets and BTC as a safe haven ? You did mention a few months ago that we will see sub $6k soon and I wasn't sure how … well you were right. You are an Oracle.
Regarding banking - When me and [redacted ATB employee] met you, we extended the offer to help out and support your retail banking needs. You decided not to take it. I just heard back from our Compliance team that their Pause extends to all retail accounts as well. Basically, anything that touches crypto / even personal accounts is not supported right now.
Unfortunately, I can't help and I am sorry. Hopefully, if the markets turn positive / and pause is lifted / I can try to seek support for your retail and business needs. For now, it is a full stop.
I am also moving to a new role at ATB this week and not sure who would manage the crypto portfolio. I will keep you looped in.
best,
[redacted ATB employee]
So forget ATB, I thought SURELY the Business Development Bank of Canada (BDC) would be there to lend a helping hand during this unprecedented economic and health crisis. The fact that our revenue dropped nearly 70% week-over-week with the onset of the pandemic, and the fact that I have paid well into the six figures in provincial and federal taxes last year would mean that, during these hard times, Canada's Small and Medium Sized Business savior wouldn't be as prejudiced. I was wrong. One week after my application went unanswered I was put in touch with a rep through a personal connection of mine. Within minutes a chipper response pinged my inbox:
Hi Adam
Happy to try and help you. Can you send 2 years of Financial statements to me and:
How much do you need?
What are your revenue expectations during and after the crisis - do you have a budget and cashflow projections?
What would be your ball park cash burn rate per month for the next few months/
Thanks - when I get these I will see if it will be me or another colleague that will be able to help and then we will reach out to arrange a zoom chat.
Best,
Moments later, before I could prepare the info, he followed up (even threw in an emoji)
Hi Again - more info below Best
This is the latest from CRA and all the links you'll need to understand and apply😊
https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html#h2
https://www.bakertilly.ca/en/btc/publications/taxflash-temporary-wage-subsidy-for-employers
https://www.taxtemplates.ca/wage-subsidy/
I thought we had it. I thought my country 🇨🇦 was coming to my rescue to help me and my 11-person locally-employed team pay the bills for a few more weeks. Until I received a third follow up…
Hi Adam
I just reached out to our Tech Finance Manager and unfortunately we are unable to Bitcoin clients as our board has deemed them ineligible due to potential money laundering. I am very sorry - this is news to me. Being a Crown Corp we have very strict rules. I think you can still access some Federal support though via some of the links I sent earlier.
Best Wishes to you and yours,
Potential. Money. Laundering.
You'll notice he does not ask for my documentation (FINTRAC Registration as a Money Services Business) which should be the first step to verifying that our business goes above and beyond to prevent the money laundering that they claim to be concerned about. Despite sending him our industry-leading policies and FINTRAC Registration the final response was polite but stern:
Morning - Thx for the info. Policy such as this are from the Board of Dir's and Minister of Industry. But things change - I now have hemp clients. It will take time though. When we get to the other side, I would love to have a beer with you and [redacted personal connection name] and learn more about your biz and future. I personally believe crypto will be a important solution in rebuilding the world economy.
Best,
And that was apparently that. However, you don't get to be one of Canada's leading Bitcoin ATM companies without a little bit of grit and resilience. So I tried again through conventional channels. This time the response was just as useless but even more robotic (you'll notice they spelled my last name wrong…)
Dear Mr. O`Brian,
Thank you for submitting a request for financing. After examination of your application, we regret to inform you that BDC is not able to provide financing for your business.
We understand how deeply the COVID-19 situation is affecting. However, we are unable to respond positively to your request that does not meet the eligibility criteria.
An evolving situation
As the COVID-19 situation continues to evolve, BDC's response is evolving as well and we are working closely with government, financial institutions and our partners.
Ensure that you have spoken to your primary financial institution to see if they are able to help with financing:
As you may know, additional measures to support entrepreneurs have been announced by the Government of Canada, including anew Canada Emergency Business Account as well as a SME Loan and Guarantee Program. As these programs are not administered by BDC, your primary financial institution is best suited to assess if you may benefit from these relief measures as they get deployed shortly.
For the latest updates by the Government of Canada on COVID-19, visit Resources for Canadian businesses: COVID-19.
Thank you,
This response left me frustrated. How could it not? How could our small, innovative, and incredibly compliant business not be within the "guidelines" set out by Mr Trudeau last week? My response was heated:
This is extremely frustrating.
The fact that I am denied help, despite paying 100s of thousands in taxes, is discouraging. Why do you take my tax money, but then deny my eligibility based on "crown rules". The eligibility criteria of BDC should be companies that are striving to employ local workers with cutting edge business practices and revolutionizing the world. All of which we do (and have been doing for 7 years)
I know you will cite "compliance", and yet refuse to look at my compliance manual. A policy that was written by a previous compliance officer from a schedule 1 "big 5" bank. A policy that has been approved by 2 third party auditors. A policy finalized by my Chief Compliance Officer with 10+ years as a compliance master who has prevented millions of dollars worth of fraud AND played a key role investigating.
It is disappointing to see you promoting the narrative that you are "for entrepreneurs" when in fact I have found it to be quite the opposite. We are a licensed money service business and I personally spend my time working with local authorities educating them how to prevent fraud within this space. Yet somehow I've been labeled "ineligible" for assistance when I really need it. What is the point of innovating? Is "the first guy through the wall gets the bloodiest" really the narrative you support? "Don't think outside the box because we don't like that?"
The prejudice of the BDC towards alternative financial companies is disappointing to say the least.
I would appreciate your response, though if past experience has taught me anything I know better than to expect one.
Perhaps the Canadian business environment is not one that is as friendly as you promote.
Stay healthy,
Adam
As you might have guessed this went unanswered (though the robots did manage to regurgitate the exact same original message) and here we are. My initial sentiment from the most recent response to the BDC remain. What is the point of innovating? Why do I spend tens of thousands of dollars every single year to ensure that our compliance is industry-leading? Why do I spend hours and hours working (for free) with local authorities to educate them about Bitcoin and how to prevent fraud? Why do I stretch my hand out so far only to have it slapped when I am looking for the same support everyone else is getting? I've endured years of prejudice from the traditional banking industry. I've built an incredibly successful business that exclusively employs local labour even though it would be all too "easy" to off-shore the work. We've paid our taxes, donated to the community all without the help of the bank's lending products, but being denied support relief during this unprecedented crisi due to "potential money laundering" is as prejudicial as it gets.
All of this to ask, Mr. Morneau, will these subsidies affect my taxes? I understand the economic cash injection. As a whole, I am onboard with the injection to help stimulate the economy. But we all know who will end up paying for it. We all know that money doesn't grow on trees (it's printed dummy) and that it will eventually have to be paid back in some capacity… which will eventually be through increased taxes. Taxes that hard-working citizens continue to pay every year. If only you knew how much you were contributing to Bitcoin's adoption…
Finally, dear reader, I beg you to think. Listen to my story and ask yourself "is my industry next?" "Can I trust them with my taxes… can I trust them with my money?" I fully believe what I am experiencing is a direct extension of the reason Bitcoin was created. Bitcoin exists to give its owners choice. A choice that doesn't exist with fiat money, printed at will by a centralized body of power. Right now the majority of "industry" is getting help, the government is listening to their people. I am unfortunately in the minority. My business is too edgy. My business is too "risky". My business doesn't deserve help. Will your industry, your business, your pension, your family be next?
Adam | www.bitcoinsolutions.ca
submitted by btcsolutionsca to Bitcoin [link] [comments]

With bitcoin under supervision, can Canada become a “purified land” for cryptocurrencies?

With bitcoin under supervision, can Canada become a “purified land” for cryptocurrencies?
The United States is still unregulated and has great uncertainty about the Bitcoin and cryptocurrency markets, but Canada, which is also a North American country, has embraced Bitcoin first. The cryptocurrency will be fully legalized from June.

https://preview.redd.it/5l7qkoewp0351.jpg?width=696&format=pjpg&auto=webp&s=1f774966845275a040226adcd240f9f0a18d9795
Canada’s new law came into effect in June. Cryptocurrency exchanges and cryptocurrency payment operators are classified as institutions that provide financial services. Cryptocurrencies begin legalization procedures in Canada.
The emergence of the new bill means that the requirements of cryptocurrency organizations are strict and standardized. Crypto companies in Canada must send all information about cryptocurrency customer transactions to Canadian authorities and register with the Canadian Financial Intelligence Unit FINTRAC (Canadian Financial Transaction and Report Analysis Center). Transactions over CAD 10,000 (approximately USD 7410) need to be declared.
The law has caused heated debate in Canada.
Francis Puglier, the head of the local cryptocurrency exchange BullBitcoin, tweeted: “Today is my last day as an unregulated virtual currency trader. From June 1, 2020 , Canada’s currency services business has officially regulated bitcoin exchanges and payment processors.”

https://preview.redd.it/l18thbryp0351.png?width=619&format=png&auto=webp&s=391d49770c09756e32af857e5940905c5b3730b1
(The following is part of the regulations, you can skip to see the conclusion)
According to the requirements of the new law, individuals or entities that are trying to trade need to provide addresses, emails, telephones, aliases, dates of birth, citizenship, ID numbers, social security numbers, etc. Entities must provide additional entity registration or establishment dates, which are registered or established The number and its jurisdiction and country of issue.
Canada named this Act “Regulations Amending Certain Regulations Made Under the Proceeds of Crime (MoneyLaundering) and Terrorist Financing Act, 2019: SO2019–240” Regulations of certain regulations: SO2019–240).
All persons or entities conducting cryptocurrency transactions need to provide a large amount of personal information and transaction information. It is worth mentioning that the transaction information includes the transaction address (receive and send), the source, is it completed? If unsuccessful, why?

https://preview.redd.it/p9ti0qa1q0351.png?width=972&format=png&auto=webp&s=29932692dda2a901ade69468fbcc4576494657b2
The bill basically treats all transactions as pre-money laundering. Once money laundering is found, it basically locks all the information of the trader. If there is no information, the exchange will be backed and there will always be someone responsible. Canadian regulation is not weaker than Japan.
In 2017–2019, which was crazy and lenient, the laws issued by various countries in 2020 were generally strict, reflecting that cryptocurrency transactions have gone through a chaotic early period, and then entered a strict period of order. Many of them are uncertain, Russia, India, and the United States, while others are open and supportive, Iran.
Cryptocurrencies are not conducive to state management. Countries that support or have planned development are generally in the third world, and are more subject to pressure and sanctions by major powers.

https://preview.redd.it/ox84hki3q0351.jpg?width=424&format=pjpg&auto=webp&s=e3854420bdf07f00b8dd599193cf68daf1b58e3a
submitted by 41caijing to u/41caijing [link] [comments]

Canadian crypto exchanges comparison spreadsheet

You can find it here : Comparison spreadsheet
I think it's a good ressource to compare and choose wich exchange is best for your needs.
Startup_Queen made a good spreadsheet on July 23 2018, and I though it was useful, but it was now a little outdated, so I updated it and added other popular exchanges.
If you find any errors or need more features don't hesitate to tell me and I'll update it!
I added a warning beside EZBTC, because some users are having problems with withdrawals. If you have any withdrawals problems on any other exchanges, please let me know and I'll add a warning.
EDIT : Added some warnings, supported coins and platform/app available
submitted by SnowCatFalcon to BitcoinCA [link] [comments]

Happy Halloween! Audit Statuses of Canadian Cryptocurrency Exchanges

Halloween is a wonderful time of year!
Businesses and consumers alike dress up, children go door to door naively asking strangers for candy, and everyone parties celebrating things like death and evil.
In the spirit of Halloween storytelling, let me tell you a scary story.
There once was a Canadian cryptocurrency exchange. It had one of the simplest user interfaces, the CEO was well known in person and trusted throughout the country for over half a decade, and it had several deposit and withdrawal methods. It was the first to register as a money services business and for much of its history, it was one of the most legally compliant exchanges. It even looked to be headed for public listing on the TSX. The exchange operated for 6 years, assuring users that all funds “are stored in cold storage, using some of the most secure cryptographic procedures possible.” Unfortunately, while we celebrate Halloween by dressing up and wearing masks once a year, the wonderful people who brought us this exchange played “dress up” for over half a decade and time will only tell if there are any more “masks” to come off in this story.
There’s no better or more fitting time to explore one of the darkest realities of the Canadian cryptocurrency space - exactly what is backing any of the cryptocurrency on Canadian exchanges. It’s easy to lose sight that there are real people behind these funds. Most people spend most waking hours working for their money. It literally is their lives. Impacts to victims are not just financial, but psychological and social as well. Victims of exchange fraud go through depression, anxiety, and trauma. They lose their trust and faith in humanity. They withdraw from friends and family in shame and humility.
In the spirit of exploring dark and evil things, let’s examine exactly what evidence there is that any of your crypto is backed on any Canadian exchange. This is a continuation of research I’ve been working on since May/June. I hope it will be enlightening and help you better protect your funds that you worked hard for.

I’ve done a detailed analysis of all Canadian exchanges I could find that handle any sort of custody of funds, and grouped them into 3 categories:

Non-Audited Exchanges (“trust us, we haven't spent your money, we promise")

Bitvo - The service “utilizes a proprietary cold storage solution”. Proprietary, as in, definitely better than established non-proprietary solutions. If you can’t withdraw, they “will credit your account for [their] withdrawal fee”. They’re not an MSB that I could find, nor are they audited.
Coinfield - MSB. No audit. Luckily it’s the "most secure trading platform in Canada" - though apparently not the other 150+ countries, including Estonia where they’re based. No matter which country you pick, the “Security” page still says "most secure trading platform in Canada".
Coinsmart - MSB. Not sure what "[i]ndustry leading cold storage" is, but luckily they’re so "accountable to [their] clients, community and to each other" and "committed to being open and honest" that they don’t need any audit.
Coinut - MSB. Also "the most secure cryptocurrency exchange platform". In addition to not using multi-sig and "not us[ing] USB drives, as the online computer may be infected with virus", they also don’t use audits.
Einstein - You can get “your money deposited and withdrawn faster than any other exchange”. As one customer said "With so many hacks and exit scams, it gives me confidence knowing Einstein is backed by hard-working people just like me." Just check the user experience on their subreddit from their "220,000+ satisfied customers".
EZ-BTC - As they said, “All your coins are kept in cold storage. They’re safe.” They have “strong security”. The supposed presence of physical ATMs was one of the strategies to build customer confidence and they promised 9% annual return on stored funds.
NDAX - MSB. Luckily also “Canada’s most secure trading platform” with "fast withdrawals". I couldn’t find any audit but at least there’s a full page risk disclosure and disclaimer. You can sleep peacefully knowing that they’re legally protected.
Netcoins - MSB. The best assurance I could find of solvency is that they “can process large transactions”. Although they don’t waste time with audits or links at the bottom of their website, apparently “[a]ll transactions happen quickly and securely” “within the same day”.
Newton - MSB. “No-fees”! Your funds are stored in the "professional custody" of Balance, which doesn’t appear to be a registered MSB. I couldn't find any audit of the funds but they "audit [their] policies and controls". They "publish the reports", but I couldn't find any reports. Simply storing funds somewhere else doesn’t give any assurance they cover customer balances.
QuadrigaCX - Operated since 2013, with “vast cryptocurrency reserves” right up to the end. "Bitcoins that are funded in QuadrigaCX are stored in cold storage, using some of the most secure cryptographic procedures possible." Their "cryptographic" procedures are so secure that nobody can access any funds, even now!
Shakepay - MSB. Many will trust the raccoon mascot promising “commission-free” trading. No audit found but the “majority of all digital assets on Shakepay are stored securely offline”. Whatever this means, it’s good to know that up to half might not be.

Audited Exchanges ("so and so swears we didn't spend your money, you can trust them, we showed them once before")

Bitbuy - MSB
Coinberry - MSB
Coinsquare - MSB
Kraken - Not a registered MSB in Canada (that I could find)

Proof of Reserves ("here's your money, right here right now on the blockchain, and here's a proof that we included your balance in that total")

Rather than depend on outdated audits (or lack thereof), it’s actually possible to use the blockchain and cryptography to enable a public real-time audit. This can give assurance to every customer that their balances are fully backed. Giving everyone the ability to check the integrity of balances will keep us all safer. It immediately exposes any fraud, and in most major hacking cases there was advanced hacking that went unnoticed ranging from months (Bitgrail), or years (Mt. Gox). Having an aware public reduces the number of people trading on fraudulent exchanges, and can pressure the exchange to shut down trading or resolve the hack faster, so less funds are permanently lost.
To help explain exactly what this is and how it works, I’ve started a detailed tutorial. I did not come up with this algorithm - it was created in 2014 by a guy named Gregory Maxwell. Sometimes cryptography can be hard to understand. Hopefully this tutorial is simple:

< < Take Our Proof of Reserves Tutorial > >


Given what can often be at stake, I had hoped that maybe one of the “audited” exchanges might embrace Proof of Reserves. Sadly I haven’t had any such luck.
Bitbuy:
Coinberry:
Kraken:
As such, the bottom line is that present exchanges don’t want to share public keys and offer the kind of transparency which is necessary to enable customers to know their funds are backed. Attempting to get answers doesn’t reveal them, and I’m left with an unnerving silence not unlike the end of Halloween night, like I’m asking questions nobody should ask.

Having spent the last 8 months of my life watching and being part of a large group of people suffer through a grueling bankruptcy, where we’ll be “lucky” to only lose 90% of our funds, I want this fixed. I don’t want to live in a reality where fraud can happen just buying/selling on the largest and most trusted exchanges. Especially now that I’ve learned blockchain provides the capability for even greater transparency and a level of public audit far beyond even what's possible with fiat.
If you feel the same way, I invite you to join Quadriga Initiative, where we are fighting for a Proof of Reserves future and also enabling businesses to help Quadriga victims with an innovative token recovery project. Every sign-up helps us reach our goal and launch the project!

If any information in this post is incorrect, please let me know so I can fix it! Thanks! I’m happy to update the audit status of any exchange given reasonable evidence, or provide a review of any other custodial exchange I might have missed.
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

Which Canadian Crypto Exchanges are Registered with FINTRAC?

Which Canadian Crypto Exchanges are Registered with FINTRAC? submitted by ThenukaK to BitcoinCA [link] [comments]

Canadian government finally passing laws regulating cryptocurrency

The Canadian government requires cryptocurrency companies to register as Money Service Businesses as of June 2020 (almost a year away), and this includes foreign companies.
The organizations will have to collect Know Your Customer (KYC) info, and will get information on any transactions of $10,000 CAD or over.
As the new rules have yet to be implemented, we don't know how you can check which companies are regulated, but I like to think this will reduce or eliminate fraudulent ICOs. I also imagine Canadian customers might avoid any unregistered company.
Of course, there's the whole "lack of privacy" thing.
Link: https://insidebitcoins.com/news/canadian-new-aml-law-will-force-crypto-exchanges-to-register-with-fintrac/232353
Edit: some more detailed info: https://www.reddit.com/BitcoinCA/comments/cbvora/canadas_crypto_exchanges_must_now_register_as/etiveg1/
submitted by InigoMontoya757 to QuadrigaCX [link] [comments]

QuadrigaCX: A history of suspicious activity

This is a compilation of everything suspicious I found with Quadriga. Please let me know if there’s anything incorrect or missing

Early History (2013-2017)
All account fundings are considered to be purchases of QuadrigaCX Bucks. These are units that are used for the purposes of purchasing Bitcoin or other cryptocurrencies. QuadrigaCX Bucks are NOT Canadian Dollars. Any notation of $, CAD, or USD refers to an equivalent unit in QuadrigaCX Bucks, which exist for the sole purpose of buying and selling Bitcoin and other cryptocurrencies.
QuadrigaCX is NOT a financial institution, bank, credit union, trust, or deposit business. We DO NOT take Deposits. We exist solely for the purposes of buying and selling cryptocurrencies.

Banking troubles throughout 2018

Period leading up to Gerry’s death

Gerry’s death and announcement

Chain analysis of the crypto trapped in cold storage

Formal Active Investigations

References:
Quadriga’s History
CCN Article listing suspicious activity
Court Documents
submitted by crashcow51 to QuadrigaCX2 [link] [comments]

CoinTrader.net: Canada's Last Bitcoin-Friendly Bank Closes Accounts Nationwide

Full post: https://www.cointrader.net/news
"we were informed this morning by our bank that the last remaining Bitcoin-friendly charter bank, Bank of Montreal, is closing all Bitcoin-related business accounts across Canada. Despite the fact that Cointrader has already implemented an anti-money laundering regime to comply with potential FINTRAC regulations which was vetted by BMO itself, the bank has decided to sever our account as well. These actions were taken immediately following the remarks made last week and without any other provocation or evidence of wrongdoing."
submitted by fatal1980 to Bitcoin [link] [comments]

Canada: Crypto Exchanges Must Register With Financial Watchdog Next June

Canada: Crypto Exchanges Must Register With Financial Watchdog Next June
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Cryptocurrency exchanges in Canada will be legally required to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) as of June 1, 2020, according to a notice published on July 10.
This requirement will come into effect along with other amendments to Canada’s new anti-money-laundering (AML) laws next year.
Crypto exchanges will also reportedly be required to observe Know Your Customer policies and report any suspicious transactions to the Canadian watchdog; this also includes keeping records of their clients and hiring a compliance officer for their platform.
A report by The Globe and Mail notes that up until now, compliance with these policies has been voluntary, but some exchanges have chosen to do so anyway.
The motivation for implementing the new policies is reportedly to get Canadian banks onboard and in cooperation with cryptocurrency exchanges.
According to Lori Stein, a partner at business law firm Osler, Hoskin & Harcourt, Canadian financial institutions have historically been concerned about the risk of money laundering and terrorist financing via crypto exchanges. Stein said:
“The hope is that now that there is going to be a requirement to register and comply, and oversight by FinTRAC, that banks and other financial entities are going to be more open to providing services to and dealing with virtual-currency businesses.”
However, Stein points out that some international exchanges may not be willing to comply with the new Canadian rules. Some other experts reportedly agree, saying that having mandatory regulation requirements could result in cryptocurrency exchanges opting to exit from the Canadian marketplace.
The CEO of blockchain startup Bitaccess, Moe Adham, told The Globe and Mail, “I expect to see a number of firms relocate outside of Canada, as well as international firms limiting access to Canadians.”
The new regulatory policies may also drive crypto exchange customers away, some say. “This has the potential to drive cryptocurrency underground again," said Canadian crypto exchange Coinsquare’s AML officer, Charlene Cieslik. Cieslik said that customers who do not want to reveal their information to exchanges, would likely just transact with each other directly.
As previously reported by Cointelegraph, a bill was signed in 2014 that required some foreign entities to register with FinTRAC for Bitcoin (BTC) payments.
submitted by Rajladumor1 to omgfin [link] [comments]

CoinField’s statement on the recent chain of events caused by QuadrigaCX affecting Canadian traders

This is a disappointing time for the Canadian cryptocurrency industry, and one that we feel at CoinField isn’t a true representation of the people or businesses in it. However, this unnerving incident has brought to light an important conversation that Canadians and cryptocurrency HODLers around the globe should discuss — the topic of regulation.
At CoinField, we believe that without regulatory guidelines, legitimate businesses and the rights of consumers are not protected. Instead, it opens up the environment to corruption and nefarious activities.

CoinField Security
The history of Bitcoin is littered with exchange hacks and scams. At CoinField, we wanted to set a new standard. We believe in cryptocurrency and the opportunity it provides newcomers to participate in building capital and communities that were traditionally left out in the cold.
That’s why providing cryptocurrency access to 100 countries worldwide and securely storing our users’ assets is our top priority.
At CoinField, we store a majority of our assets in cold storage. Only to meet our daily trading supply, do we keep a limited amount in warm wallets. To us, storing a majority of assets in cold storage offline is the most secure option we can offer as an exchange. In most cases, exchanges are hacked because assets were stored in hot wallets online.
As a company, choosing our cold wallet and custodial service partner was one of the most important decisions we made. Confidently we can say we chose the best in the biz, Bitgo. Bitgo is a global leader in institutional cryptocurrency financial services, including cold wallet custodial storage. They provide institutional level security as well as multi-signature wallets. Multi-signature wallets protect users against unforeseen events like the death of the founders at CoinField.
Another security feature we offer is storing all our users’ data in an isolated network of servers.

Thoughts on Regulation
Although Canadians may feel disheartened by recent events, we wanted to take this time to highlight the need for regulation in this industry. When an industry is in its nascent stages, it is favourable for there to be little or no regulation. It allows innovators and developers to test and create without restrictions and barriers. However, in Bitcoin’s 10th year, it’s time to put some guidelines in place.
At CoinField, we applaud the start of an important dialog on the regulation of cryptocurrency exchanges. We believe that all exchanges need to be audited annually, just as traditional financial institutions are required to do. Regulation helps the growth of legitimate businesses and protects the rights of consumers. We support the provincial and federal governments of Canada in their endeavor to regulate the cryptocurrency exchange market.
Here at CoinField, we are in compliance with Fintrac regulations and we have an in-house compliance team led by a chief compliance officer who is dedicated to combating all fraudulent activity. In addition, we employ someone who audits all withdrawals from our exchange.

Market Position
CoinField is a Canadian Cryptocurrency Platform based in Vancouver, BC, founded by local technology veterans and entrepreneurs Babak Bob Ras and Reza Bashash. We have a team of 30+ experts located in the World Trade Centre in downtown Vancouver, Canada and we’re actively seeking talent to join us on our journey.
CoinField launched in April 2018 in midst of the cryptocurrency market crisis. Users came to CoinField solely on the reputation of the platform and the word of mouth by satisfied users. In November 2018, we launched the service globally, offering access to crypto trading in 100 countries, achieving 100% user growth in a months time.
This month, we are launching our White Label Cryptocurrency Trading Software. Prior to the commercial launch, the team spent a year creating and building the one-of-a-kind crypto trading platform. The all-in-one platform offers better performance, customization, and liquidity than our competitors. After the successful launch of CoinField, we are confident that financial institutions that want to build a digital assets exchange in their own country will want to take advantage of our software licensing program.
As a young company in a young industry, we know that there will be challenges. The market is volatile, it needs a regulatory framework, and identity fraud is a constant threat.
However, we know that to build a sustainable ecosystem built on complex cryptographic functions, the industry needs to prioritize education. In the next few months, we’ll be launching a Daily Live News outlet covering all things crypto from market updates to industry news.

Lastly, since our world is heading in a mobile-oriented direction, we’re building a trading app for on the go.
We are here for the long run. We want to build a sustainable business, using the latest technology to enable access to financial services and improve the quality of life for everyone.
submitted by CoinField to CoinField [link] [comments]

EFT Withdrawal Limit Modifications

As many of our users are aware, we have faced a variety of payment processing and banking issues over the past few months as the banks in Canada have cracked down on Bitcoin and cryptocurrency usage. While the reasons for the Canadian banking system attacking cryptocurrency are unknown, there has been a clear attack on the industry by all of Canada’s big five banks. This has forced us to change some of our payment processing procedures. While the attacks of the banks have primarily impacted the ability for Canadians to transmit funds to purchase cryptocurrency, it has also impacted internal transfers within companies as well as outgoing transfers from exchanges across the country. As the largest exchange in Canada, we have been particularly targeted by the banks.
To help address these issues, we have established a number of new payment processing partnerships that will enhance the the experience for our users. Please note that effective immediately:
- EFT payments will be limited to $10,000 per payment. This allows our payment processing partners to better comply with FINTRAC legislation.
- Any payment larger than $10,000 must be submitted as a wire withdrawal.
Thank you for your understanding as we work to improve access to cryptocurrency for all Canadians.
submitted by QuadrigaCX to QuadrigaCX [link] [comments]

Quadriga better business bureau report

BBB File Opened:28/7/2015Type of Entity:Private Limited Company by Shares (LTD)
Alternate Business Name
Business Management
Additional Contact Information
Phone Numbers
According to a statement issued on January 14, 2019 Gerald Cotten, co-founder and CEO of QuadrigaCX. died December 9, 2018.
Social Media
TwitterFacebook
Business Categories
Currency Exchange, Virtual Currency

Alerts

BBB Investigation Results
In December of 2018 BBB began an investigation into the business practices of QuadrigaCX. This investigation was prompted by the number complaints alleging that their currency exchanges from virtual currency to Canadian Dollars were not being completed in the advertised time frame.
Our investigation uncovered a lawsuit ( click here ) which disclosed that approximately 26 million dollars were frozen by the financial institution where the accounts were held. This suit also states that these funds were traced to transactions by 388 Depositors. On November 9, 2018 the frozen funds were ordered to be deposited with courts for determination as to entitlement of the disputed funds.
Some of the transactional behaviour described in the suit is not typical of currency exchange. The suit indicates that a third party processor used a personal bank account to deposit money that was intended to fund currency exchanges on behalf of QuadrigaCX and QuadrigaCX clients.
Currency exchange in Canada is regulated. Currency exchange transactions are required to proceed through bank accounts that are associated with Financial Institutions or Money Service Businesses rather than personal accounts. Financial Institutions & Money Service Businesses are regulated business types, with legal reporting requirements. Money Service Businesses are required to register with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
At this time in Canada, virtual currency (aka crypto currency) exchanges are not required to register as a Money Service Business. BBB verified this on December 5, 2018 with FINTRAC.
When an individual purchases crypto currency with QuadrigaCX they are engaging in currency exchange. The purchase of currency is currency exchange. Purchasing Bitcoin (BTC) with Canadian Dollars (CAD) is changing one currency to another.
According to the QuadrigaCX website, a person first purchases QuadrigaCX bucks, those QuadrigaCX bucks are then used to purchase the desired currency. Typical transactions are CAD or USD used to purchase QuadrigaCX bucks, which is then used to purchase the crypto currency of choice, and the reverse.
QuadrigaCX bucks may not have value outside of the QuadrigaCX platform. This means that if QuadrigaCX ceases operations it may not be possible to redeem the value of those QuadrigaCX bucks. QuadrigaCX does not provide information on what happens to QuadrigaCX bucks during transactions that have not completed.
On December 10, 2018 BBB sent an email to [[email protected]](mailto:[email protected]) requesting information relating to the information discovered during the course of our investigation. As of January 7, 2019 BBB has not received a response.
These were the questions asked by BBB: 1. Does QuadrigaCX have a storefront? If yes, what is that address? 2. If a client has an issue to what address should they send any legal correspondence? 3. Who is your current payment processor(s), are they operating from a fully transparent business account? 4. A Financial Institution froze ~ 26 million of client funds in an account in 2018, these were recently ordered to be released, why have there been delays in the transfer of funds to other clients? 5. Complaints to BBB indicates that delays well beyond the stated deposit time-frames have occurred with no explanation to those clients. Can you clarify why the delays occurred? 6. Where does QuadrigaCX disclose what happens to QuadrigaCX Bucks if QuadrigaCX closes or ceases operations. These are purchased by clients to fund purchases of other currencies. If they remain in an account because of processing delays or business or account closure how are clients refunded? Are they refunded the original purchase price of the QuadrigaCX Bucks or the market value, and in which currency, fiat or crypto?
Should BBB receive a response the business review will be updated with a summary of the information received.
Business Alert
On January 31, 2019 QuadrigaCX declared that they ave made an application for creditor protection. Clients who believe they are owned money may find the information contained on the Office of the Superintendent of Bankruptcy of Canada's website about the Companies' Creditors Arrangement Act (CCAA) useful. That information can be read at https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02284.html
The following is the statement posted on QuadrigaCX's website, https://www.quadrigacx.com/ January 31, 2019
Dear Customers,
An application for creditor protection in accordance with the Companies' Creditors Arrangement Act (CCAA) was filed today in the Nova Scotia Supreme Court to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers. The Court is being asked at a preliminary hearing on Tuesday February 5 to appoint a monitor, Ernst & Young Inc., as an independent third party to oversee these proceedings.
For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful. Further updates will be issued after the hearing.

https://www.bbb.org/ca/bc/vancouveprofile/currency-exchange/quadrigacx-0037-1281832/details#BBB-Investigation-Results
submitted by cryptotrader1234 to BitcoinCA [link] [comments]

Quadriga used to own coinwallet (repost)

Coinwallet is probably QuadrigaCX - Canadian firm - they seem to have re-branded themselves. They are using the same numbered company 1009926 B.C. LTD. This is not necessarily illegal.
frankenmint's second search is WRONG - imho. (http://abdc.bc.ca/uploads/reg50_steps_to_incorporating_a_company_in_bc.pdf) 'A company can also choose to use as its name, the incorporation number of the company followed by “B.C. Ltd.” (example, 0123456 B.C. Ltd.) If you choose to use the incorporation number as the company’s name, you do not need a name approval and reservation. The incorporation number is assigned by the Corporate Registry at the time the Incorporation Application is electronically filed with the Corporate Registry.'
However note that, this is called an Incorporation Number and you need to pay a fee to see ANY further details on BC Online. You can mail: [[email protected]](mailto:[email protected]) and ask them for some free info. My point is, it's an Incorporation number not a Business number which is longer.
https://www.services.rcmp-grc.gc.ca/ (Online Canadian Police Complaint) https://ca.linkedin.com/in/duaneseamans https://www.youtube.com/channel/UCUWZbZwN29aSxgH1WPxkiTw http://bitcoinist.com/psa-coinbase-referral-spammer-uses-bitcoin-urls/ https://www.facebook.com/profile.php?id=100007586649815 https://www.reddit.com/BitcoinCA/comments/6aik81/mybtcca_has_still_not_sent_me_the_300_worth_of/ http://pix.toile-libre.org/upload/original/1495554589.png
(I did some talking to people and this is what I found out)
********** I can tell you that their business and mailing addresses are:
140 - 332 Water St. Vancouver, BC V6B 1B6
As well, the proprietor (owner) of the business is 0984750 B.C. LTD. and is registered to the same address. ************* Search on 0984750 B.C. LTD gives:
0984750 B.C. LTD. is a money service business located at 140-332 Water St, Vancouver, BC V6B1B6. The registration number at Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is M13547855.
Lots of other details available online: Business Activity Foreign exchange dealing - Opérations de change Remitting/transmitting funds - Remise ou transmission de fonds https://ca.linkedin.com/in/reneemgillis http://datagovca.com/money-service.php?id=M13547855&agent=0
http://www10.fintrac-canafe.gc.ca/msb-esm/public/detailed-information/msb-details/7b227072696d617279536561726368223a7b2273656172636854797065223a312c226f72674e616d65223a223039383437353020422e432e204c5444227d2c226d73624f72674e756d626572223a3133353739307d/ Registration status of MSB: Expired Legal names of MSB: 0984750 B.C. LTD. MSB registration number: M13547855 Initial date of registration: 2013-12-23 Expiry date of registration: 2016-11-30 Main office or location of MSB: 1500-701 WEST GEORGIA ST VANCOUVER, BC, CANADA V7Y1G5
MAYBE they are fraudulent but I'd say they are doing it with their real identities and NOT like a Nigerian prince. (I highly doubt they are stealing ppl's money in other words)


The above was copied and pasted from: https://bitcointalk.org/index.php?topic=1169098.140
submitted by cryptotrader1234 to BitcoinCA [link] [comments]

A municipality in Canada is set to accept bitcoin for property tax payments starting next month as part of a one-year trial

A municipality in Canada is set to accept bitcoin for property tax payments starting next month as part of a one-year trial


https://preview.redd.it/00o8cnf8eip21.jpg?width=1080&format=pjpg&auto=webp&s=0daa481cb1979ace30ad6d37fb838a41f4be3bb7
A municipality in Canada is set to accept bitcoin for property tax payments starting next month as part of a one-year trial.

The Town of Innisfil, Ontario, announced Thursday that the cryptocurrency payment option will be offered in partnership with Toronto-based digital assets trading platform Coinberry.

Starting April, approximately 36,000 residents of the town will now see bitcoin (BTC) as a payment option on the municipality’s website. Other cryptocurrencies like bitcoin cash (BCH), ether (ETH), litecoin (LTC) and XRP could also be added in the future, according to the statement.

Using Coinberry’s cryptocurrency payment processing solution Coinberry Pay, residents will be able to pay taxes in bitcoin in Innisfil’s digital wallet.

Coinberry will then process those funds “in accordance with strict adherence to existing financial regulatory requirements” and “instantly” convert them into Canadian dollars and transfer it to the municipality. Coinberry is a Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)-registered firm.

Innisfil mayor Lynn Dollin said:

“There’s no doubt that cryptocurrency is growing in usage and popularity. By getting into this now, we are making sure our municipality is ahead of the game, and signalling to the world that we truly are a future-ready and innovative community.”

Back in November, the U.S. state of Ohio also allowed businesses to pay taxes in bitcoin, in partnership blockchain payments processor BitPay. Ohio is also expected to extend the service to individuals in the future.

ND Invest also offers to pay for services with its own currency. NDCOIN is the primary payment unit for real estate, car and furniture purchases with the guaranteed mechanism of price increase that is driven by ND Invest platform launch and continuous use of ND HOLDING LTD services.

submitted by nd_invest_ico to u/nd_invest_ico [link] [comments]

Interest in new Canadian bitcoin exchange?

Hello everybody,
I represent Aproze.com, and I'm here to get information on whether or not people would be interested in using a new, Canadian based, MSB accredited bitcoin exchange. It will be a standard exchange, with the addition that No one international adversary will be able to freeze fiat accounts due to our trivial banking procedures.
If you'd like to show interest in our exchange, please check out https://www.aproze.com/ More information will be posted soon, but for now you can enter your email to be alerted when we have a production site available.
Thank you all! All comments and suggestions are welcome.
P.S. Feel free to also share with your friends and spread the word. We aim to provide international bitcoin solutions once we get going locally. The more attention we get now, the better.
submitted by Aproze to Bitcoin [link] [comments]

As a Canadian what exchange options do we have apart from Cavertex

also how is bitcoin taxed under canadian law, as supplemental income or is it under barter tax. how are people going about buying/selling and owning btc in canada.
thanks for the info in advance
submitted by TahaB to BitcoinMarkets [link] [comments]

Vault of Satoshi is Closing.

Jan 15/2015: Updated information below
We are implementing Service Fees for all Balances, starting March 15th, 2015 - more information here: https://www.reddit.com/vos/comments/2sj2da/vos_is_closing_as_well_as_inactivity_service/
Jan 9/2015: Updated information below
Vault of Satoshi will be closing on February 5th, 2015. Although new deposits will no longer be accepted, rest assured, you will have plenty of time to finalize any trades and withdraw any outstanding funds with all of the convenience and expeditiousness that you’re used to. Please ensure that all of your withdrawal requests are submitted by February 5th.
We expect there will be some speculation as to why the Vault is going to be sealed forever, and we’d like to reassure the community that it has absolutely nothing to do with insolvency, stolen funds, or any other unfortunate scenario. To this day we are proud to have run the first full proof-of-reserve exchange in the industry, with strict compliance and security regimes. Our decision stems from opportunities presented by a new business that has forced us to reexamine our priorities.
Our founders and team of developers began work on a new, non-cryptocurrency project about 6 months ago, which has since become quite successful. We are forced to make a choice on where to expend our efforts, as we simply do not have time to continue operating both businesses. We feel splitting our focus would be a disservice to the customers of Vault, so although our competitors may lack some of the features, currencies, and innovations that Vault brought to the Canadian market, they will serve you well for your basic exchange needs.
We are still true-believers, and think Satoshi Nakamoto has set in course something that will change the world for the better. Thank you loyal Vault customers for joining us on one of the most exciting adventures of our time! There’s no doubt that this is just the beginning, and we will continue to watch from the sidelines as history unfolds, with Bitcoin becoming more understood, accepted, and appreciated every day.
Update
After reviewing questions, comments and receiving many emails from concerned customers, we realized that we didn't actually tell anyone what would happen to all of your information upon the closure of the company. We apologize for the lack of information and any concern it has caused.
If you have done any trades, exchanged any type of currency, requested a VOS Credit or Debit Card, used a redeemable code, or have sent us any type of currency, your documents will be kept with Iron Mountain for 7 years from your last transaction date, after which, they will securely destroy the documents. Why 7 Years? We are legally required to hold such documents for many of the government agencies (Fincen, Fintrac, CRA, etc.) we work with for that period of time.
If you've been a Financial Ghost in our system, your information will be destroyed by Iron Mountain in our office upon closure of the company, and the remains will be taken away for further processing by Iron Mountain.
You can learn more about the services Iron Mountain has provided Canadian Banks and Financial Institutions since 1951 by following this link: Iron Mountain
Sincerely,
The Vault of Satoshi Team
submitted by vos_team to vos [link] [comments]

✈️HUGE Bitcoin.com Giveaway, BCH TXs over $2 billion per day, US City to use SLP Token and more The Easiest Way for Canadians To Buy and Sell Bitcoin! (Start Today) Canada begins to regulate cryptocurrency firms Canada's AML Draft for Virtual Currency First Bitcoin ATM  Going Mainstream

Bitcoin uses blockchain technology to regulate the release of new Bitcoin and verify transactions independently of the banking system. It was designed as a way to pay for goods and services online without relying on the major banks and paying high transaction fees. Bitcoin has been used as a currency since 2010 and it continues to grow. Cryptocurrency exchanges and payment processors are now legally recognized as Money Service Businesses (MSB) within Canada. June 1 saw the enactment of amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act that were passed in June 2019 to address holes in the then-existing framework. Candian crypto firms must now report all transactions […] In an email to one Canadian bitcoin brokerage, a senior compliance officer on behalf of FINTRAC declared that, with respect to the business activities of the brokerage (which are relegated to the 2. How popular is Bitcoin in Canada? In mid-2018, a study by the Currency Department of the Bank of Canada revealed that 58% of Canadians hold Bitcoin for investment purposes. According to the same study, 85% of Canadians are aware of Bitcoin. Weekly LocalBitcoins volumes for the Canadian dollar shows that interest in Bitcoin has leveled off since the high prices of late 2017 and early 2018. 2020-07-16 Special Bulletin on COVID-19: Trends in Money Laundering and Fraud 2020-06-12 News release: Alberta RCMP charge three in an international luxury vehicle export fraud 2020-06-12 News release: OPP investigates criminal organization manufacturing and distributing contraband tobacco, illicit cannabis, cocaine and fentanyl 2020-06-10 Amendments to the Regulations under the PCMLTFA 2020

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✈️HUGE Bitcoin.com Giveaway, BCH TXs over $2 billion per day, US City to use SLP Token and more

Sites mining bitcoin are popping up in Alberta, Quebec, Manitoba and B.C. as a relatively cheap and reliable supply of electricity makes digital currency mining a cost-effective proposition. The ... - We are regulated by regulated by FINTRAC; MSB license number is M18935124 - Cash in & out easily: Direct deposits and withdrawals of CAD, SGD or USD - Rated as one of the top 10 safest crypto ... Canada has published draft anti-money laundering (AML) legislation amendments that apply to companies dealing in virtual currencies like bitcoin. Table of Contents: 00:04 - AML & “Virtual ... COINBERRY.io Launches Bitcoin Cash trading on their Canadian Platform The FINTRAC-registered cryptocurrency platform, based out of Toronto, with over 20,000 users, has launched BCH trades ... The Bitcoin is "neither funds, nor the currency of a country," says Peter Lamey, a spokesman with Canada's regulatory agency, the Financial Transactions and Reports Analysis Centre (FINTRAC).

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