Canada's Vault of Satoshi granted Money Service Business License

Earlier this month, Canadian virtual currency exchange Vault of Satoshi announced it was ceasing all U.S. currency transactions due to ongoing issues with regulators. In recent weeks, the exchange has been focused on becoming a legitimate financial institution in Canada, even though there are few formal rules for how bitcoin fits into Canadian banking law.

Their efforts appear to have paid off. Today, Vault of Satoshi was formally granted a Money Service Business License in Canada, allowing them to officially work as a money-transmitting business and exchange. This is the first meaningful legal recognition of any Canadian bitcoin exchange.

The company is also in the process of acquiring a Investment Industry Regulatory Organization of Canada license, which would allow them to work with non-monetary assets. This license could become relevant should Canada follow the IRS example and define virtual currencies as property, rather than currency.

With bitcoin’s regulatory framework rapidly taking shape in the U.S. and Canada, it’s likely that Vault of Satoshi will re-enter the U.S. bitcoin market in coming months.