CBlocks, a Miami based-based cryptocurrency startup is moving to Canada to avoid regulatory trouble in the United States. The firm has been unable to obtain clear legal guidance concerning its status, hence the move. Cryptocurrency laws in Canada are a lot less stringent than in the United States.
Unclear U.S. Regulations to Blame for the Move
According to the firm’s co-founders, they are not sure of how the regulatory agencies would classify the company. They even reportedly hired two lawyers from different firms, all to no avail. Both lawyers couldn’t come to a consensus regarding the status of the company under current U.S. regulations.
Auston Bunsen, one of the co-founders of CBlocks said that:
They can’t agree as to whether we’re a money services business or not.
Getting a precise answer to the question of whether the company is a money services business or not is of vital importance. A money services business has to comply with stringent reporting and record-keeping statutes.
According to Bunsen, one of the lawyers even indicated that the firm could register as a “memorabilia company.” This designation, however, did not sit well with the co-founders…