In recent regulatory news, a Canadian court plans to take custody of $19.5 million of funds that Quadrigacx deposited with the Canadian Imperial Bank of Commerce before they were frozen due to competing ownership claims. Also, New York state regulators have granted the 14th Bitlicense to New York Digital Investment Group, and it has been alleged that the authorities in China have threatened to cut off electricity to miners in Yunnan Province for failing to pass compliance checks.
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Provincial Court Takes Custody of Quadrigacx Funds
The Ontario Superior Court of Justice has to take custody of funds owned by Canadian cryptocurrency exchange Quadrigacx that were frozen by the Canadian Imperial Bank of Commerce (CIBC). The frozen funds include $69,000, as well as 25.7 million Canadian dollars ($19.43 million). The bank froze the money due to what it saw as competing claims to the funds.
“CIBC has met the onus of establishing that there is a real foundation for the expectation of competing claims with respect to the disputed funds,” said Judge Glenn Hainey, who is presiding over the case. He ordered CIBC to pay the disputed funds to the Accountant of the Superior Court to await the outcome of the proceeding.
New York State Grants 14th Bitlicense to NYDIG
The New York State Department of Financial Services has that NYDIG Execution, a subsidiary of New York Digital Investment Group (NYDIG), has become the 14th company to be granted a Bitlicense.
Robert Gutmann, the chief executive officer of NYDIG, stated: “NYDIG is pleased to receive these regulatory approvals and we look forward to providing secure and transparent liquidity, custodial and asset management services to the institutional market.”
China May Cut Power to Miners in Yunnan Province
Red Li, the co-founder of 8btc, recently posted a tweet suggesting that the Chinese authorities are ramping up compliance checks and tax inspections for mining farms. Li’s stated that “mining facilities in Yunnan Province are facing another round of compliance check[s].” Li added that failure to adhere to the inspections would result in miners’ electricity being “cut off from the grid.”
The news follows the recent publication of a statement by an anonymous mining company claiming that its mines in China’s Guizhou Province and the Xinjiang Uyghur Autonomous Region have been temporarily suspended for tax inspections and to implement real-name registration processes.
How do you expect the dispute over Quadrigacx’s frozen funds to be resolved? Share your thoughts in the comments section below.
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This year the crypto community is actively tracking the news on new BitLicenses being granted by the New York State Department of Financial Services, which allow companies to offer crypto-related services in the state.
The New York DFS has already issued 14 BitLicenses and the latest one has been received by the New York Digital Investment Group (NYDIG).
14th BitLicense Granted
As it has been revealed, on November 14, 2018, the NY DFS approved the 14th application for getting the above mentioned license. Now New York Digital Investment Group (NYDIG) Execution LLC, a subsidiary of NYDIG LLC, officially has a virtual currency license and a money transmission license.
According to DFS superintendent Maria T. Vullo, the financial services marketplace in New York continues its growth and development. She highlighted that protecting consumers is the most important aspect while their final goal is to ensure the responsible growth of the industry.
Commenting their approval of NYDIG’s application for BitLicense, she :
“Today’s approval further demonstrates that operating within New York’s robust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls.”
NYDIG’s Services
The granted virtual currency license will enable NYDIG to provide New York residents with its liquidity and asset management services to New York residents.
Moreover, the NYDIG Trust Company, a subsidiary to the main entity has been permitted to act as a limited purpose trust company.
It means that the New York Digital Investment Group now has a right to offer custody and trade execution services, operating as a custodial for a row of digital currencies. This row includes bitcoin, bitcoin cash, Ethereum, XRP and Litecoin.
Speaking about Robert Gutmann, CEO of New York Digital Investment Group, :
“NYDIG is pleased to receive these regulatory approvals and we look forward to providing secure and transparent liquidity, custodial and asset management services to the institutional market. We want to express our gratitude to the NYDFS for providing a clear and comprehensive regulatory framework for investors, providers and users alike to engage with the burgeoning digital asset ecosystem.”
BitLicense Critique
BitLicense was launched in 2015. Its holders have the right to work with cryptocurrencies, but to get it they need to meet a number of requirements connected with cryptocurrencies’ control, administration, storing, and issuance.
The license ensures clear regulation of the sphere within the state, nevertheless its requirements are widely criticized. Some companies have even left the state.
As we have already mentioned, earlier BitLicense was granted to 13 other companies, among which there are , , , . received its cryptocurrency license in May and it was the first New York-based company and the fifth company globally to become the holder of BitLicense.
