The startup CBlocks, based in Miami, moves to Canada because of the strict legislative framework in the state where it carries out its professional activities.
Because of ambiguities, the company failed to benefit from legal advice regarding its position in the states’ legislative regulation, taking the decision to leave the country.
To operate legally, CBlocks has hired two specialists, but the results weren’t exactly the ones expected. The company doesn’t have a coherent legislative framework because of the lack of information provided by professional agencies. None of the hired lawyers were able to infer a category that would fit CBlocks under the laws in force in the US.
“They can’t agree as to whether we’re a money services business or not,” stated Auston Bunsen, one of the co-founders.
The legislative act requires a concrete delimitation of the firm’s incorporation into one of the legal categories. Finding a correct answer that specifies whether CBlocks is a “money services business” or not is a mandatory requirement for the future of the company. If the answer is “Yes“, CBlocks will have to respect a stricter line of bonds.
CBlocks moves to Canada but will continue to work from Miami
Because the company carries out crypto activities, it’s necessary to comply with the legislation. To avoid problems that may arise and legal misconduct, CBlocks’ founders have decided to move to Canada.
Canada is known as a welcoming nation and a suitable environment to carry out activities in the crypto sector. One of the founders of the company mentioned that there is no need for stringent and complex procedures to be present on the Canadian market. However, to qualify for legal authorization in Canada, the company must hire a Canadian citizen.
Despite the fact that CBlocks is moving its legal activities to Canada, the co-founders will continue to work a defined period from company’s headquarters in Miami.
CBlocks was founded in January 2018 by Auston Bunsen, PK Banks, and Mario Aguayo. The company’s purpose is to allow both beginners and professionals an easy way to trade cryptocurrencies.