Two major exchanges in Canada, Bitbuy and Coinsquare, have collectively crossed the $1 billion CAD mark in assets under management. The achievement was announced by WonderFi, the parent company overseeing these platforms, highlighting the substantial growth in clients’ cash and digital asset deposits.
Bitbuy & Coinsquare: Merger and User Base Expansion
In a strategic move in July 2023, Bitbuy and Coinsquare joined forces with WonderFi, a decentralized finance (DeFi) platform backed by Canadian business magnate Kevin O’Leary, known as “Mr. Wonderful.” This merger not only formed a powerful alliance but also resulted in a substantial user base, boasting a collective reach of 1.6 million Canadians across all subsidiaries. The collaboration has evidently paid off, with the platforms experiencing a 16% increase in monthly active users during November compared to October.
Regulatory Recognition and Revenue Surge
Bitbuy and Coinsquare’s ascent to becoming crypto industry leaders in Canada is underlined by their commitment to regulatory compliance. Bitbuy secured full regulation as a cryptocurrency exchange in November 2021, courtesy of the Ontario Securities Commission. Coinsquare, on the other hand, achieved a significant milestone in October 2022 by becoming the first crypto exchange in Canada to receive broker-dealer status from the Investment Industry Regulatory Organization of Canada (IIROC). Notably, during Q3 2023, WonderFi reported a robust revenue of $9.9 million CAD, marking a crucial step towards achieving cash-flow positivity in October.
The latest developments in the Canadian cryptocurrency space signify a maturing industry with a keen focus on regulatory adherence and user experience. Bitbuy and Coinsquare’s trajectory, from regulatory milestones to a substantial increase in user base and assets under management, showcases the resilience and potential of the crypto market in Canada. As the sector continues to evolve, the success of these exchanges sets a positive precedent for others, emphasizing the importance of regulatory compliance and strategic partnerships in fostering growth and stability.