Bitbuy and Coinsquare Surpass $1 Billion CAD in Managed Assets Following Merger with DeFi Platform WonderFi
Summary:
Bitbuy and Coinsquare, two leading Canadian cryptocurrency exchanges, now manage over 1 billion CAD ($736 million) in assets, according to parent company WonderFi. This follows a merger with Decentralized Finance (DeFi) platform WonderFi in July 2023 and user base growth to 1.6 million Canadians. Both Bitbuy and Coinsquare have achieved regulatory recognition in Canada, with offshore exchanges like Binance, ByBit, and OKX ceasing operations due to the new regulatory framework.
Bitbuy and Coinsquare, two of Canada's leading cryptocurrency exchanges, have a combined total of over 1 billion CAD ($736 million) in managed assets. This announcement from parent company WonderFi on December 6 discloses that the total of clients' liquid and digital asset holdings has grown from $695 million ($512 million) in the third quarter. The release further stated that in November, the platforms witnessed 16% growth in monthly active users compared to the previous month, and a significant 54% surge in total trade volume. Back in July 2023, Bitbuy and Coinsquare allied with the decentralized finance platform, WonderFi, a venture supported by renowned Canadian businessman Kevin O’Leary, otherwise known as "Mr. Wonderful." This consolidation expanded the customer base across all subsidiaries to an impressive 1.6 million Canadians. Bitbuy became a fully regulated crypto exchange in Canada in November 2021, obtaining a license from the Ontario Securities Commission. Similarly, Coinsquare received broker-dealer status from the Investment Industry Regulatory Organization of Canada (IIROC) in October 2022, becoming Canada's premier crypto exchange to do so. In Q3 2023, WonderFi reported combined revenues of $9.9 million CAD ($7.3 million), and the company states that it achieved positive cash flow by October. At present, all cryptocurrency exchanges operating in Canada must be registered or must sign a legally binding commitment until a license is awarded. Numerous offshore exchanges, including Binance, ByBit, and OKX, have discontinued operations in Canada in light of these new regulations. Canadian authorities, starting in February, necessitated cryptocurrency exchanges to remove unapproved stablecoins, with USD Coin (USDC) as the exception. Following this mandate, exchanges such as Kraken and Coinbase removed Tether (USDT) and other stablecoins for Canadian users. Related: Kevin O’Leary-endorsed WonderFi purchased Bitbuy's parent company for $162M.
Published At
12/6/2023 11:36:34 PM
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