In Quebec, a business that operates a virtual currency automated teller machine, such as a bitcoin ATM, or that provides a platform for trading virtual currencies, will now be required to obtain a license under the Money-Services Businesses Act (the “Act”).On February 12th, 2015, the Autorité des marchés financiers (the “AMF”) announced this change in a news release and published amendments to the Policy Statement to the Act, which clarified that “making available to the public a means of purchasing, with cash, virtual money from an automated distributor, without the intervention of a natural person” constitutes operating an automated teller machine for the purposes of the Act.In the past year, bitcoin ATMs have been rapidly popping up all over the province, and especially in Montreal./ currently reports 21 such ATM’s in operation in the province (18 in Montreal), compared with only one ATM operating in the province at this time last year.These bitcoin ATM operators and operators of other virtual currency trading platforms will now have to meet the obligations under the money service business licensing framework and should expect heightened oversight by the AMF.

Specifically, an application for a permit as a money service business requires certain disclosure of information about the business, including the legal and corporate structure, a business plan, and information about any relevant employees and mandataries.A money service business is also required to maintain and update certain records and registers.china killed bitcoinFinally, licenses will only be issued to businesses that the AMF deems, having considered input from investigations by the Sûreté du Québec and local municipal police forces, to possess integrity and good moral character.ethereum explainedThe stakes for compliance are high: a money-service business that contravenes the obligations or commits offences under the Act could potentially be fined or have its licence revoked.in bitcoins orbit

The AMF, despite the decision to oversee the operators of virtual currency ATMs and online trading platforms, reminds consumers in its news release that it has not regulated virtual currency itself.In particular, the AMF notes that virtual currency transactions remain not covered by financial services compensation fund (protecting victims of fraud) or the deposit insurance fund (guaranteeing the deposits of up to $100,000 per person in the case of the insolvency of the deposit institution).ethereum moneroAs such, the AMF warns of the continued volatility, liquidity and fraud risks associated with virtual currency transactions.ubs and bitcoinThe AMF’s announcement comes in the wake of recent amendments to the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act, extending the scope of existing federal anti-money laundering laws to persons “dealing in virtual currencies”, by including these within the definition of “money services business”.bitcoin config file linux

Regulations in respect of these amendments detailing what type of activity will constitute “dealing in virtual currencies” have not yet been issued, and it will be interesting to see the extent to which they parallel the approach taken by the AMF.I will be paying with: ® Fixed rate for 20 minutesAuto-graduation system in place (learn more)Does NOT WORK if you have a Hybrid Debit/Credit card (learn more)Only available for BMO, RBC, ScotiaBank, TD, and several credit unions (full list) Available at most banks (Except TD Canada Trust)No fixed rate due to bank processing time (2-3 business days) Available with any Canadian BankMinimum $100, Maximum $9000No fixed rate due to bank processing time (5-7 business days)Pre-Authorized Debit Authorization Required Instant Processing available 24/7/365 (learn more) Fixed rate for 10 minutesAvailable at 6000+ Locations across CanadaInstant Processing available 24/7/365 (learn more) Fixed rate for 24 hours Fixed rate for 3 hours Fixed rate for 3 hoursPROMO - Currently save $20/BTC You must be to place an order.bitcoin mining rig th/s

Tracking Bitcoin Scams Interesting paper: "There's No Free Lunch, Even Using Bitcoin: Tracking the Popularity and Profits of Virtual Currency Scams," by Marie Vasek and Tyler Moore.Abstract: We present the first empirical analysis of Bitcoin-based scams: operations established with fraudulent intent.litecoin estimated valueBy amalgamating reports gathered by voluntary vigilantes and tracked in online forums, we identify 192 scams and categorize them into four groups: Ponzi schemes, mining scams, scam wallets and fraudulent exchanges.bitcoin india news hindiIn 21% of the cases, we also found the associated Bitcoin addresses, which enables us to track payments into and out of the scams.We find that at least $11 million has been contributed to the scams from 13 000 distinct victims.Furthermore, we present evidence that the most successful scams depend on large contributions from a very small number of victims.

Finally, we discuss ways in which the scams could be countered.Posted on February 4, 2015 at 7:02 AM • 27 Comments ← Obama Says Terrorism Is Not an Existential Threat GPG Financial Difficulties → Photo of Bruce Schneier by Per Ervland.Schneier on Security is a personal website.Opinions expressed are not necessarily those of IBM Resilient.The Québec Government’s Authorité des Marchés Financiers (the “AMF“) today issued a News Release announcing that businesses that operate digital currency ATMs and “platforms for trading virtual currencies” must be licensed by the AMF as money services businesses (“MSB“) pursuant to the provincial Money Services Business Act (the “Act“).It also issued a Policy Statement to accompany the Act to reflect how “platforms for trading virtual currencies” and virtual currency ATMs will be governed.Generally, in law policies are non-binding.Apart from these ATMs in Québec, it is unclear what else in respect of digital currency businesses need to be licensed.

The Policy Statement does it define what a “platform for trading virtual currencies” is and it is not obvious whether that means digital currency exchanges, or a website, or neither, or both, or something else entirely.The Policy defines “currency exchange” as the exchanging of currency or legal tender money for another, based on an exchange rate.Digital currencies are not currency or legal tender so “platforms for trading virtual currencies” are not currency exchanges but there are no other definitions that could possibly be relevant in the Policy Statement.With respect to ATMs, the Policy Statement says that digital currency ATMs are considered ATMs for the purposes of the Act only when they sell digital currencies for cash and provided there is no human intervention in the transaction.If an ATM transaction has human intervention, it is not a MSB and licensing is not required.Presumably then, a Bitcoin company could legally avoid licensing in Québec with an ATM by ensuring human intervention in the transaction.

It is not known what is meant by human intervention.Under the Policy Statement, customers of digital currency ATMs do not have to be identified before the MSB provides serves to them.The Act requires that MSBs be investigated by the provincial police and found suitable to operate the business.In addition to a criminal background check, the police will determine the moral character of the person.MSBs must disclose and obtain security clearances for, associates of the business and all of its lenders.MSBs must also disclose the names of all of its employees, as well as its directors and officers and their personal information, and file a business plan and financial statements.A business that has any connections to a person in organized crime will not be regulated to operate a MSB.The legal obligations imposed on MSBs pursuant to the Act are here.The issue on what is required to be licensed in Québec in respect of “platforms for trading virtual currencies” was discussed when the AMF testified before the Senate Banking Committee on March 12, 2015.

When the AMF was asked about its licensing regime by the Senate Committee Chair, Irving Gerstein, the AMF testified: “At the moment, there is no regulation of virtual currencies, including Bitcoin…it’s a little ‘No Man’s Land’.” Senator Gerstein said that he understood that the AMF was going to require a permit for ATMs but he wanted to know whether the AMF was going to license  exchanges.The AMF testified that if a digital currency exchange transacted Bitcoin that was not securities (in the securities law sense), it was outside the mandate of the AMF.If what was exchanged was securities, they said, the exchange would fall within the legislative framework.The AMF’s specialist elaborated to testify that if a digital currency exchange transfers money directly from one person to another person, it is a transfer of funds, ergo a MSB and the Act applies.A “platform”, the AMF testified, means a system like PayPal except with Bitcoin.If, the AMF testified, there is a transfer of currency to purchase (or sell) Bitcoin, such a business must be registered as a MSB.