Three cryptocurrency exchanges based in Canada, WonderFi,
CoinSmart, and Coinsquare, have reportedly completed a merger deal. The
combined entity plans to invest in SmartPay, a digital asset payments platform
launched by Coinsmart in 2020.
WonderFi is a public
company listed on the Toronto Stock Exchange. The company operates several
brands, including Coinsquare and Coinsmart. Coinsquare is a crypto marketplace
that allows users to trade and manage their financial assets, while Coinsmart
provides digital asset services for institutional investors.
The new entity resulting
from the business combination will reportedly focus on consolidating Bitbuy and Coinsquare, according to Binu Koshy, a spokesperson of the
companies quoted by the Financial Post.
Coinsmart launched
SmartPay, a platform that allows users to pay and receive payments using
cryptocurrencies, in 2020. According to the information on its website,
SmartPay has transacted more than $500 million since it was created. The
platform is regulated by the Financial Transactions and Reports Analysis Centre
of Canada (FINTRAC).
According to the
statement issued by the parties involved in the business combination, the
entities affiliated with WonderFi have transacted more than $17 billion since
2017, have more than $600 million worth of assets under custody, and more than
1.5 million users in Canada.
Commenting on the
business combination, Kevin O’Leary, WonderFi’s strategic partner, said:
“This is a major advantage as unregistered international exchanges can no
longer serve the Canadian market without adhering to the local regulations.”
“Now more than
ever, investors are actively seeking trading platforms that operate in harmony
with the regulators,” O’Leary added.
Defying Regulatory
Challenges
The business combination
arrives at a time smaller crypto trading platforms are filling the gap left by
the larger companies leaving Canada due to regulatory challenges. Finance
Magnates reported in
May that Binance was exiting Canada due to the challenging
policies by the market regulator in
the region.
Following
the collapse of the cryptocurrency exchange FTX, the Canadian Securities
Administrators issued
a notice that
classified stablecoins as securities. The move restricted the services of the
companies issuing stablecoins in the region. Additionally, the regulators
issued a directive that all the cryptocurrency exchanges in the region should
be registered.
Three cryptocurrency exchanges based in…
