Canada tightens restrictions on Bitcoin trading

Both the Royal Bank of Canada and TDBank have frozen Bitcoin accounts, without explaining their reasoning


Curt Hopkins
April 27, 2013 2:31AM (UTC)
This article originally appeared on The Daily Dot.

The Daily DotIn the United States, the difficult-to-trace digital currency Bitcoin is largely unregulated. Recently, the Treasury Department has issued some guidelines, though they remain rather broad.

The regulatory environment in Canada, however, is rather more strict, as several Bitcoin entrepreneurs have found out.

Advertisement:

Bitcoin drew international attention through Cyprus’s banking emergency, its inclusion in the American financial regulatory framework, and increasing press coverage. The currency recently spiked to as high as $266 before crashing to a low of about $50, then rebounding to a post-crash high of $162.

Canadians James Grant of Canadian Bitcoins and Melvin Ng of CADBitcoin both run Bitcoin exchanges, where users can convert Canadian dollars to bitcoins and vice versa. Both were contacted by banking authorities and told that their business accounts had been frozen.

The Royal Bank of Canada and TDBank, which froze the accounts, have not explained their reasoning.

To Grant, it is simple. “They don’t like bitcoins,” he said to Business Insider.

Joseph David, proprietor of Canada’s largest Bitcoin exchange, VirtEx, which was shut down temporarily in 2011, told the publication he thought perhaps the businessmen had not “obtained the proper money service licensing.” Ng, however, said he had done so.

The shutdown was enough to convince Ng to leave the exchange business. He is now setting up a chain of Bitcoin-only stores in Canada.

Advertisement:

Curt Hopkins

Curt Hopkins is a writer who lives in San Francisco.

MORE FROM Curt Hopkins

Related Topics ------------------------------------------

Banking Bitcoins Canada Economy The Daily Dot Treasury Department




BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••


Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •