Coindesk is 100% full of shit. Several crypto exchanges and companies in Canada have Canadian bank accounts and have the MSB license, including the top exchange in Canada (Coinsquare, which has a bank account with Bank of Montreal - a top 4 bank there). The reason why Quadriga can't get a Canadian bank account is that they are sketchy fraudsters.
There is a high bar for Canadian banks to issue bank accounts for MSBs. But it is not impossible. The banks are willing to work with large volume crypto businesses. And you might need connections, people who can vouch for you, etc. I think a big part of the game is schmoozing with VCs who have clout with the banks. I'm assuming the issue is that KYC/AML compliance is expensive and the bank doesn't want to waste their time entertaining every request for a crypto MSB business account.
Most people are W-2 workers (what 4chan affectionately refers to as "wagecucks") and have never run their own business or even seen a 1099 in their life. So most people aren't sympathetic about the fact that government regulations are very hostile towards small businesses. It's impossible for a small fintech corporation to survive with KYC/AML compliance requirements being what they are. The banks are not going to eat that cost for your firm. And the banks are not even going to bother to entertain your request for a business bank account if they feel you don't have the ability to pay their compliance costs. The government should try to find a way to streamline KYC/AML compliance costs somehow to make it more cost efficient for small fintech businesses.
“The fact that it happened a month ago, and they just announced it now, and no proof of death, no obituary, no linkedin profiles of any of the staff, no physical addresses, limited crypto withdrawal limits, etc all makes people suspicious.”
::: “but no banks have the appetite to take the drafts so we are looking around for crypto-friendly banks that will take the drafts so we can use it to payout clients. Even lawyers are having a hard time getting a bank.”
LOL @ so many Butters running for the exits and trying to cash out.
What happened to their CURRENCY OF THE FUTURE mantras and their hatred of filthy fiat and their hatred of banks ?
Yes, what I particularly like is the fact that it is these same filthy bankster scum who proactively tried to protect users of the exchange by freezing the account and taking legal action when they saw that their "third party" "payment processor" had just transferred over $2m of client funds to his personal bank account ...
It's so much more shady than that. He hit up three different CIBC branches all over Toronto and opened up accounts each time without telling them that he was running a payment processing *business* which is a huge no-no to not disclose that in the first place. They immediately suspected him of money laundering due to the constant bouncing around of the funds and so they froze the account. Due to this he is now considered persona non grata in the eyes of the heavily regulated Canadian banking system due to potential future liabilities towards the banks themselves. Essentially he can't be trusted as he already established he doesn't know what the fuck he's doing and the bank's don't want to get wrapped up in future lawsuits over millions of dollars. It's just not worth the risk to them.
I am right now independently, financially independently. I am saying to so many people who say that this is going to be a con artist game, that this was gonna be a scammer game: “Hey, you are gonna lose all your mone-” My BANK still doesn’t believe in me!