Bitbuy and Coinsquare Surpass $1 Billion CAD in Assets
Two Canadian crypto exchanges, Bitbuy and Coinsquare, have achieved a milestone by surpassing $1 billion CAD ($736 million) in assets under management. According to their parent company WonderFi, the combined client assets held by the two exchanges have increased from $695 million ($512 million) in the third quarter.
In November, the platforms experienced a 16% increase in monthly active users compared to October, along with a 54% surge in total trading volume. The merger between Bitbuy and Coinsquare with decentralized finance platform WonderFi took place in July 2023, creating a user base of 1.6 million Canadians across all subsidiaries.
Regulatory Compliance and Revenue Growth
Bitbuy obtained full regulation as a crypto exchange in Canada after being licensed by the Ontario Securities Commission in November 2021. Similarly, Coinsquare became the first Canadian exchange to receive broker-dealer status from the Investment Industry Regulatory Organization of Canada (IIROC) in October 2022.
During Q3 2023, WonderFi generated $9.9 million CAD ($7.3 million) in revenue and achieved positive cash flow in October. However, the Canadian regulatory landscape requires all crypto exchanges to register or sign a legally binding undertaking for licensing.
New Rules Impact Offshore Exchanges
As part of the new regulations, major offshore exchanges like Binance, ByBit, and OKX have ceased operations in Canada. In February, Canadian regulators also mandated delisting of unapproved stablecoins, resulting in Kraken and Coinbase removing Tether (USDT) and other stablecoins for Canadian users.
Hot Take: Canadian Crypto Exchanges Reach New Heights Amidst Regulatory Changes
The achievement of Bitbuy and Coinsquare in surpassing $1 billion CAD in assets under management showcases the growth and resilience of the Canadian crypto market. Despite regulatory challenges, these exchanges have adapted and obtained necessary licenses to operate within the country’s framework.
The increased user activity and trading volume highlight the growing interest in cryptocurrencies among Canadians. However, the exit of offshore exchanges and delisting of certain stablecoins demonstrate the impact of regulatory changes on the crypto industry.
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