Three Canadian cryptocurrency companies, WonderFi, Coinsquare, and CoinSmart, have announced their collaboration to create the largest and only fully regulated platform in Canada. The partnership comes at a time when authorities are trying to compensate for a lack of legislation to regulate the industry. The platform will be able to rely on the reputation of Coinsquare, which was the first Canadian platform to be registered with the national regulatory body in October.
When combined, the three companies will have over $600 million in assets on deposit. The new platform aims to create a safe, secure, scalable, and regulated trading platform that can compete with the unregulated global exchanges still operating in Canada. Coinsquare CEO Martin Piszel stated that the platform’s combination would be able to provide a competitive alternative to unregulated global exchanges.
WonderFi strategic investor, Kevin O’Leary, stated that for years, operating a registered cryptocurrency platform was a disadvantage as competitors that provided services without the burden of compliance costs were far more profitable. He added that investors who see the tremendous potential of cryptocurrencies to make financial services more transparent, less costly, and more productive are seeking investment opportunities that operate in harmony with their regulators.
The partnership’s announcement follows the fall of industry giant FTX, whose founder Sam Bankman-Fried faces charges of bribery and fraud. The scandal has rocked the cryptocurrency world, and authorities are trying to compensate for a lack of legislation to regulate the industry. US regulators have also cracked down on players in the cryptocurrency community, with Binance being sued by US regulators last week, and Coinbase revealing that the US market regulator, the Securities and Exchange Commission, said it is going to sue Coinbase for violation of securities regulations.
The collaboration between WonderFi, Coinsquare, and CoinSmart aims to create a safe, secure, scalable, and regulated trading platform that can compete with the unregulated global exchanges still operating in Canada. The new platform will be able to rely on the reputation of Coinsquare, which was the first Canadian platform to be registered with the national regulatory body. The partnership’s announcement comes at a time when authorities are trying to compensate for a lack of legislation to regulate the industry, and the cryptocurrency world is still reeling from the FTX scandal and US regulators cracking down on players in the industry.
