• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency Technology

Banks Hate Crypto In Canada: QuadrigaCX Exchange Sees $28M Frozen

Nick Chong by Nick Chong
2 years ago
in Cryptocurrency Technology
Reading Time: 3min read
Banks Hate Crypto In Canada: QuadrigaCX Exchange Sees $28M Frozen
Advertisement

Although Canada is widely regarded as a progressive nation when it comes to the acceptance of promising technologies and sectors, this forward-thinking hasn’t stopped local institutions from doing their utmost best to curb the growth and maturation of the Canadian crypto space via exchanges.

QuadrigaCX Runs Into Banking Concerns, $28 Million Frozen

Since Bitcoin’s debut almost ten years ago, crypto exchanges have been the primary on-ramp and off-ramp for investors worldwide. Keeping their influence in mind, for much of crypto’s decade-long history, many exchanges from around the globe have been unfairly targeted by banks and governmental agencies.

This apparent distaste towards crypto assets has primarily taken the form of biased shutdowns and seizures of an exchange’s bank account. Without banking services, it is nigh-impossible for a platform to fulfill its fiat-processing purposes, essentially bringing some portions of the nascent crypto industry to a standstill. Although this issue began to subside in correlation with 2017’s jaw-dropping crypto bull run, there are still fringe cases that indicate that banks aren’t willing to greet the cryptosphere in good faith and wide open arms.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The Globe And Mail, a leading news outlet in Canada, recently reported that Vancouver-based QuadrigaCX, a well-known crypto exchange in the frigid nation, has been unable to access $28 million of its funds since January. Per lawfully-filed court documents, the Canadian Imperial Bank of Commerce (CIBC) froze five accounts that were linked to Costodian Inc., Quadriga’s payment processor, and Jose Reyes, its owner.

While this move took many by surprise, in a factum filed at the Ontario Superior Court of Justice, which is situated over 3,000 kilometers away from Quadriga’s headquarters, CIBC claimed that it froze the funds as it was unable to determine who legally has possession over the $28 million. This led the bank to query the aforementioned Ontario court if judges could take full possession of the funds to formally decide if the money belongs to Quadriga itself, its payment processor, or the 388 consumers who reportedly deposited fiat contained in the frozen accounts.

“The Canadian Banking Cartel”

Evidently, the Vancouver-based startup hasn’t taken nicely to this unexpected move, with Quadriga divulging that CIBC is in the wrong, as filings show that the crypto exchange is likely the owner of a majority of the funds. Moreover, not only is CIBC misreading Quadriga’s documents, but the exchange claims that it has been targeted for its affiliation to the crypto industry, which some traditional institutions see as a threat to the classic way of doing things. The startup’s lawyers wrote:

“This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadriga’s business is a trading platform for individuals trading in cryptocurrencies.”

But the bank behind this debacle remained adamant, claiming that seven out of the 388 depositors had issued wire recalls at one point, but the financial institution was unable to determine if it should’ve gone ahead with honoring the requests. And, as aforementioned, CIBC then requested the Ontario court to take the situation into its own hands, asking the justice system to decide where the money should end up.

Quadriga, doing its best to fight back, issued an email, which is dated to August 21st, to its clients highlighting the issue. According to the rather inflammatory statements contained inside the message, Quadriga claims that the “Canadian banking cartel” has hampered its ability to provide quality services to its customers in a direct attempt to “stifle bitcoin adoption” in Canada.

This lack of banking support hasn’t gone unnoticed by the local crypto community, of course. Just yesterday, on October 8th, a Reddit user on the BitcoinCanada subreddit questioned why Quadriga is citing that a single BTC is worth $9,360 Canadian Dollars (CAD) on its platform, while BTC is trading at only $8,600 CAD on other domestic exchanges. Due to the fact that users can deposit, but not withdraw, crypto prices have drastically increased across all trading pairs, and by the looks of it, this problem won’t see a resolution any time soon.

It is important to note that issue doesn’t only apply to a single Canadian bank, as Toronto Dominion, an institution that holds a large stake in TD Ameritrade, and Royal Bank of Canada (RBC) have both taken moves to block its customers from purchasing crypto assets in certain scenarios. But it isn’t all doom and gloom, as Coinsquare, Quadriga’s primary competitor, has reportedly secured a strong banking relationship with one of Canada’s “Big 5,” indicating that local banks aren’t willing to drop crypto altogether.

Featured Image From Shutterstock
Tags: canadaCIBCcryptocrypto exchangeQuadrigaCXregulationvancouver
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

ILCoin, virtual reality

Why Virtual Reality is The Future of Entertainment

4 weeks ago
Contested Election Results Force Discussion of Blockchain Based Voting System

Contested Election Results Force Discussion of Blockchain Based Voting System

4 months ago
jax network

Jax.Network Addresses Crypto Scalability Issues, to Create A Decentralized Consumer Payment System

5 months ago
crypto tether usdt stablecoin

No, Another $1 Billion In Tether (USDT) Wasn’t Added To The Crypto Market Cap

6 months ago
crypto

South Korean Crypto Platform ICON Launches Decentralized Passport Service

2 years ago
Swiss Luxury Hotel Accepts Bitcoin Showing Increase in Adoption, CEO Explains Motive

Swiss Luxury Hotel Accepts Bitcoin Showing Increase in Adoption, CEO Explains Motive

2 years ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Easyfi Network introduces Staked Derivative Assets Money Markets on Layer 2 DeFi

March 1, 2021

Seascape Network Officially Debuts on Binance Smart Chain

March 1, 2021

What Will Happen to Oil Production and Distribution in 2021, and How Can You Make a Profit on It

February 28, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.