Canadian crypto exchange clashes with bank over $22M in frozen funds
QuadrigaCX, Canada’s largest cryptocurrency exchange has been denied access to CA$28 million of its funds domiciled in the Canadian Imperial Bank of Commerce (CIBC) since January 2018. The company, based in Vancouver has reacted furiously after the bank decided to freeze several accounts operated by Quadriga’s payment processor.
The Globe and Mail reports that CIBC froze the accounts following its inability to ascertain the real owners of the funds and requested the court to take possession of the funds in question. A court document quotes the trading platform urging the court not to yield to what it described as “unverified and invidious conjecture that the transactions are questionable.”
IMF issues warning over Bitcoin and crypto “rapid growth”
The International Monetary Fund has warned the “rapid growth” of Bitcoin and cryptocurrency assets could create “new vulnerabilities in the international financial system,” as the world’s banks adjust to the recent Bitcoin and blockchain boom. Bitcoin and cryptocurrencies, including Litecoin and others, are being examined by the traditional financial system to gauge how they might be integrated as both investment tools and ways to move money across borders more quickly and cheaply.
“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,” according to the fund’s latest World Economic Outlook report, out today.
Singapore’s central bank will help crypto startups open bank accounts
The Monetary Authority of Singapore (MAS), the city-state’s central bank, is working to ensure cryptocurrency startups receive domestic banking services as part of the country’s efforts to boost fintech development.
Ravi Menon, the institution’s managing director, said the central bank is trying to “bring the banks and cryptocurrency fintech startups together to see if there’s some understanding they can reach… The nature of this business is a bit different, so banks may need to employ other ways in which they can establish bona fide.”
Coinbase confident Japanese crypto exchange license arriving in 2019
A senior executive of the US based crypto exchange Coinbase said he is confident the firm will receive an operating license in Japan next year, even while regulators in the country are stepping up scrutiny of crypto exchanges.
Mike Lempres, chief policy officer of Coinbase, said that the process of getting a license is “going well” with the Financial Services Agency. He added that the company is “committed to getting it done [which will] certainly be in 2019… The Japanese government is more focused on security, that is good for us.”
Blockchain News 10.10.2018