Bitcoin investors face long delays cashing out, criticize two B.C. firms


Bitcoin investors unable to cash out, or having to wait weeks and longer to get their money, have been complaining about QuadrigaCX, a company founded in Vancouver that is one of the largest cryptocurrency exchanges in the country.

There has also been discontent among users of cryptocurrency exchange services at another Vancouver company, Einstein Exchange.

Exactly why investors haven’t been getting their money as immediately as they should, which is usually around 10 minutes, may be more complicated.

The muddle at QuadrigaCX comes as stratospheric gains made by Bitcoin last year are being wiped away and there are more comparisons of it to big market crashes of the past, including the dot-com crash of the early 2000s and tulip-bulb mania in the mid-17th century.

Proponents of Bitcoin and other virtual currency trading talk of rapidly improving features and processes that can track and stem fraud, criminal activity and money-laundering, but these risks loom.

QuadrigaCX CEO Gerald Cotten says high Bitcoin prices earlier this year brought “20x our usual transaction volume,” but he also blames a backlog starting because banks in Canada are cracking down on the Bitcoin industry.

“Instead of simply blocking Bitcoin companies from having direct bank access, they went after both the customers as well as the payment companies that help facilitate transactions related to Bitcoin.”

There are some signs that banks in Canada are grappling, at least, with the popularity of the market.

Gerald Cotten, CEO and founder of QuadrigaCX, a Canadian cryptocurrency exchange platform involved in Bitcoin. (Handout photo)

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Gerald Cotten, CEO and founder of QuadrigaCX, a Canadian cryptocurrency exchange platform involved in Bitcoin. …read more

Source:: Vancouver Sun

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