Miami-based Cblocks has announced that it will relocate to Canada, citing a lack of regulatory clarity regarding cryptocurrency in the United States as the principal catalyst for the move.
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Cblocks to Relocate to Canada
Cblocks, a Miami-based company that generated $32,000 in a month through selling beginner traders mystery boxes of assorted cryptocurrencies, has announced its intention to move to Canada.
Cblocks has cited regulatory hurdles as the principal reason for the relocation, claiming that lawyers from two different legal firms were unable to determine the precise legal classification and legislative apparatus governing the company’s operations.
Cblocks sells an encrypted USB containing five random cryptocurrencies that are chosen on behalf of customers in exchange for a $50 USD service fee. Despite the company’s primary product tangibly comprising a USB drive, Cblocks could be considered a money services business under U.S. law – as the cryptocurrencies distributed by the company may be considered to be securities.
“They can’t agree as to whether we’re a money services business or not,” Cblocks chief executive officer and co-founder, Auston Bunsen said. “Canada has much friendlier regulation when it comes to cryptocurrencies. They only require a federal registration,” Mr. Bunsen added.
Canadian Regulatory Apparatus Less Expensive for Cblocks
In addition to stringent anti-money laundering requirements, being classified as a money services business would incur significant registration fees. In Canada, complying with the same money services regulations will not incur fees, further motivating the company’s relocation.
Cblocks expects to be officially incorporated within a few weeks, anticipating to launch for Canadian customers during May. Despite the company’s official relocation, Cblocks’ founders will stay in Miami, and exclusively target Canadian users for the time being, however,
