Quebec Instills License Requirements for Digital Currency Businesses

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Quebec Instills License Requirements for Digital Currency Businesses

One of the biggest stories in the news these past few weeks is the BitLicense.  The second draft of the document is now available for view prior to its finalization following a 30-day period of commentary by the general public.

As a result, all eyes have been watching New York, the document’s official home.  When it comes to cryptocurrency regulation, New York is probably first in line.

As it turns out, the state’s action may be inspiring other geographic areas to at least start following in its footsteps.  In compliance with the Money-Services Businesses Act, the east-central province of Quebec, Canada is asking all businesses operating a digital currency ATMs or exchange platforms to obtain appropriate licenses from AMF, or the Autorite’ des Marches Financiers.  The AMF serves as the area’s financial regulator.

Basically, if you run a business that trades digital currency in any way, shape or form, the business falls under the hand of various license provisions.

Of course, it wouldn’t be news if there wasn’t a catch.  While the AMF is overseeing cryptocurrency organizations and acknowledging their presence, it is not actually regulating such businesses, and is therefore warning all enthusiasts to stay cautious when walking into the digital currency arena:

“Transactions involving virtual currency are not covered by the financial services compensation fund or the deposit insurance fund.  Quebeckers should therefore be careful with virtual currency transactions as they may incur losses that are not covered under current compensation or deposit insurance plans.”

But Canadians, apparently, aren’t afraid of any risks.  Canada currently boasts over 60 digital currency ATMs, 19 of which are in Quebec.

While this is a mere baby step and no official regulation is taking place just yet, is it possible that the nation of Canada may instill stricter laws regarding bitcoin and digital currency companies?  Post your thoughts below.