Hey everyone,
I am considering starting a cryptocurrency exchange in Canada but am not sure what are the various rules and regulations that go into it. I am from Quebec so the Autorité des marchés financiers (AMF) is the governing body here. I have the technical expertise to set up the exchange, however, am not sure what are the rules and regulations surrounding establishing an exchange. Also, I have used Coinsquare and Quadriga CX in the past but they have terrible prices, very low volumes, complex interfaces, and heavy verification processes. My project aims to combat all these issues. If I create a buy-only site initially, can I get by using just phone verification? Every bitcoin atm I have visited simply requires me to use phone verification so is it possible to do the same online?
The reason why those businesses are still in existence is because of those heavy verification. You don't set out what you cannot achieve because you are clearly contradicting yourself. You don't know the rules that surrounds the exchange for certain, but you still want to combat what those companies that are in existence are doing that is against what you believe should be right. The simple truth is, no matter how, if you are serious about running an exchange business, KYC is key unless you want to run it off the books and be ready to face the music in case you are caught.
My advise, the best is to contact the regulatory body and ask for information yourself so you have the first hand information then decide whether its something you can cope with or not after which you know what to do. Also, you can consider peer to peer site to trade you coins.
