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Peer-to-Peer Trading boom in Canada Amidst Government Restriction on Cryptocurrency Trades

Apr 20, 2018 Posted /  665 Views

Peer-to-Peer Trading boom in Canada Amidst Government Restriction on Cryptocurrency Trades

The Bank of Montreal is among the latest banks to impose a major crackdown on cryptocurrency related accounts in the bank. The bank has embarked on a move that restricts users from making a cryptocurrency purchase with their own account balances a move which had been rumoured way before the bank to an official action.


Bank of Montreal Restricts Cryptocurrency Purchase


Canada is emerging as one of the most conducive avenues for cryptocurrency activities; this, however, is fading off due to the steps being taken by the countries financial authorities in combating cryptocurrency activities in the country. The latest reports reaching our desk indicates that the bank of Montreal has restricted cryptocurrency activities in the bank and preventing the purchase of cryptocurrency using bank account balance.


The bank reportedly blocked all debit transactions with cryptocurrency platforms through payments channel via online services like Interact and Mastercard. The bank says their decision is justifiable as a way to better protect the security of their clients and the bank as a whole. There is an influx in the number of cases where Canadian banks interfere with their customer abilities to transact via bank accounts related to a cryptocurrency.


Recently Scotiabank also blocked all credit and Visa related purchases of cryptocurrency while Toronto-Dominion Bank has put a blockage on its customers from purchasing crypto assets using credit cards. The bank has claimed they are protecting customers from substantially higher debt levels.


Reports on the Restriction was Leaked on Reddit before the Bank took Action


Rumours about the action the Bank of Montreal was about to take on cryptocurrency activities in the bank made rounds of social media site Reddit days before the said actions came into effect. The leaked information is said to have been an internal memo that the bank was circulating to all it’s staff members ahead of their decision to block crypto related activities at the bank.


Meanwhile, it has emerged as a trend how big international banks are rallying against cryptocurrency in order to suppress bitcoin which they (Banks) could not control. Attempts are being made by banks to stand against the emerging crypto industry by voiding cryptocurrency the money transfer bridge they direly need through the banks.


Yet such aggressive policies being implemented by banks is proving to be useless and making no gain in trying to curtail cryptocurrency activities by bank customers. Most cryptocurrency enthusiasts are both economically and technologically savvy making them able to continue with cryptocurrency trading outside of the banks in peer-to-peer arrangements.


Some Canadian financial institutions are Interested in Cryptocurrencies


On the other hand, some Canadian Financial Institutions are showing interest in cryptocurrency with a Toronto based Stock Exchange company, TMX Group revealing their plans to launch their own cryptocurrency exchange. TMX reached a partnership agreement with Pay case Financial in a deal that will see Shorcan Digital Currency Network, a TMX, subsidiary company create a specialized brokerage service for the cryptocurrency.


Shorcan is slated to start with the major cryptocurrencies Bitcoin and Ethereum in the second quota of 2018 while initializing Paycase’s data aggregation services to build a technology that will bring common stock trading data benchmarks and index in the platform. Information obtained from a Shorcan presses release revealed that;


“Designed to take advantage of the combination of Shorcan Brokers' (ability to do things very well) in providing clients in the Canadian (related to managing money) industry with liquid, (producing a lot with very little waste) and reliable (company that buys and sells things for clients)services with Paycase's premier cryptocurrency data grouping (raised, flat supporting surface)and established worldwide network of industry leaders and people (who were part of a study, etc.)”

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Tags: bank of montreal cryptocurrency Cryptocurrency Trades Government Restriction Bitcoin ban Bitcoin Canada Cryptocurrency Canada peer-to-peer

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