AIBC

Canadian crypto exchanges surpass $736M record, report says

Posted:Dec 08, 2023 08:59 Category: Blockchain , Crypto , Posted by Content Team

Industry-leading Canadian crypto exchanges Bitbuy and Coinsquare have exceeded $736 million in assets, as reported by parent company WonderFi on December 6.

Per a press release, WonderFi expressed its commitment to improving industry conditions and boosting crypto-related activities on the Bitbuy and Coinsquare platforms. This initiative follows the conclusion of the third quarter, during which the combined client assets under custody reached $695 million.

As two of Canada’s largest and most trusted cryptocurrency exchanges, Bitbuy and Coinsquare continue to be the preferred partners for Canadians looking to access and purchase digital assets in a safe and secure way,” said WonderFi president and CEO Dean Skurka.

Recent positive growth for both Bitbuy and Coinsquare is attributed to increased user growth, heightened user activity, and price appreciation.

In November 2023, the exchanges experienced a 16 percent combined uptick of monthly active users compared to the previous month. There is also a 54 percent surge in total trading value for November, marking a positive trend that WonderFi acknowledges as a significant improvement over the preceding months.

Bitbuy-Coinsquare, WonderFi merger

Bitbuy and Coinsquare previously merged with WonderFi in July 2023 during the closing of a business combination. During the merger, WonderFi acquired a user base of more than 1.6 million registered Canadian users and combined assets under custody with a value surpassing $600 million.

With our firmly established position, WonderFi is excited about its next chapter as we integrate our 1.6 million registered users, cross-sell services across our diversified suite of products, and add to our portfolio of innovative products,” said Skurka after the merger.

The merger marked a turning point for the crypto exchange business in Canada, considering that unregistered international exchanges can no longer operate in the Canadian market without complying with local regulations.

Now more than ever, investors are actively seeking trading platforms that operate in harmony with regulators. Through consolidation, WonderFi has been one step ahead every step of the way,” said WonderFi strategic investor Kevin O’Leary.

Concurrent with the merger news is the new record of over one million transactions in SmartPay, a crypto payment solution under CoinSmart, one of the crypto exchange platforms under WonderFi. According to WonderFi, the payment solution became sought-after for various purposes, including content creation, gaming, and e-commerce.

WonderFi’s dedication to expanding our footprint in the crypto payments space exemplifies our commitment to innovation and growth,” said Skurka.

Pre-WonderFi milestones

Bitbuy and Coinsquare have come a long way since their foundation as some of the most prominent Canadian crypto exchange platforms.

Bitbuy achieved legalized status as a crypto exchange in full compliance with Canadian regulations in 2016. In November 2021, it obtained a license from the Ontario Securities Commission.

WonderFi decided to acquire Bitbuy by paying nearly $162 million to buy First Ledger Corp., Bitbuy’s parent company. During the acquisition, WonderFi issued 70 billion new shares and paid $15.7 million in upfront cash and $23 million in deferred cash. Furthermore, Bitbuy retained all its employees following the merger.

As for Coinsquare, the crypto asset trading platform joined the Investment Industry Regulatory Organization of Canada (IIROC) and had its dealer registration approved on October 12, 2022.

In dealing with an IIROC registrant, Coinsquare clients now have the added comfort and security of knowing that Coinsquare is operating at the highest level of dealer compliance and oversight under the existing regulatory system,” said the Coinsquare team.

New regulations require licensed and insured custodians to secure and separate client funds at Coinsquare. The Canadian Investment Protection Fund ensures cash protection in client accounts in case of insolvency.

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