Canadian Crypto Exchanges Surpass $1 Billion CAD in Client Assets
Bitbuy and Coinsquare, two prominent Canadian crypto exchanges, have achieved a major milestone by collectively reaching over $1 billion CAD in client assets. This significant growth from the previous quarter demonstrates the increasing influence of these exchanges in the Canadian cryptocurrency market.
In addition to the surge in assets, there has been a noticeable increase in user engagement on both platforms. Monthly active users rose by 16% in November compared to October, and total trading volume experienced a 54% surge, indicating heightened trading activity among users.
Canadian Crypto Exchanges Embrace Regulatory Compliance
Bitbuy and Coinsquare have made substantial progress in regulatory compliance, which is crucial for Canadian crypto exchanges. Bitbuy became fully regulated after obtaining a license from the Ontario Securities Commission in November 2021. Similarly, Coinsquare obtained broker-dealer status from the Investment Industry Regulatory Organization of Canada (IIROC) in October 2022.
In July 2023, both exchanges merged with WonderFi, a decentralized finance (DeFi) platform. This strategic move consolidated their user base of 1.6 million Canadians across all subsidiaries, reflecting the growing trend of consolidation in the Canadian cryptocurrency industry.
WonderFi reported a combined revenue of $9.9 million CAD in the third quarter of 2023 and became cash-flow positive in October, demonstrating its financial stability amidst market fluctuations.
Canadian Regulation Spurs Crypto Market Changes
The regulatory environment in Canada is rapidly evolving for crypto exchanges. All crypto exchanges operating within the country are now required to be registered or sign a legally binding undertaking while awaiting licensing. This initiative aims to enhance security and reliability in cryptocurrency transactions.
As a result of these regulations, prominent offshore exchanges like Binance, ByBit, and OKX have ceased operations in Canada. Canadian regulators also mandated the delisting of unapproved stablecoins, excluding USD Coin, leading platforms like Kraken and Coinbase to delist Tether and other stablecoins for Canadian users.
By complying with these stringent regulations, Canadian crypto exchanges are well-positioned to lead the market while protecting investors and maintaining the integrity of the financial system.
Hot Take: Canadian Crypto Exchanges Achieve Milestone in Client Assets
Bitbuy and Coinsquare, two leading Canadian crypto exchanges, have collectively surpassed $1 billion CAD in client assets. This milestone reflects their expanding influence in the Canadian cryptocurrency market. The platforms have experienced increased user engagement and trading activity, indicating their growing popularity among crypto enthusiasts.
Furthermore, these exchanges have embraced regulatory compliance, obtaining licenses and statuses from relevant authorities. This commitment to regulation enhances the security and trustworthiness of crypto transactions on their platforms.
The evolving regulatory environment in Canada has prompted changes in the crypto market, with offshore exchanges exiting the country and delisting unapproved stablecoins. With their compliance and financial stability, Canadian exchanges are well-positioned to lead the market and uphold investor protection.
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