- Under the premise of creating “a regulated cryptocurrency exchange”, the companies WonderFi, Coinsquare and CoinSmar have come together to offer crypto services in Canada and will be registered as Coinsquare.
- The three companies together have more than 1.65 million registered users and more than $600 million in assets.
- Of the combined company, WonderFi shareholders will own 38%, Coinsquare 43% and CoinSmart 19% on a partially diluted basis.
After years of being looked askance by the traditional economy, cryptocurrencies today appear at the center of the scene and are not only analyzed by high-profile investors, but also by the governments themselves, many of which aim to find a regulation. Canada, for example, is one of those that is at the forefront.
Under the premise of creating “a regulated cryptocurrency exchange” they joined Wonder Fi, Coinsquare and CoinSmart. These three Canadian companies combine with the desire to “create the largest regulated platform for trading crypto assets in the country” and are confident of a sure success in the sector that is resurging. The official communication confirmed what had previously been advanced B.N.N. Bloomberg.
“As regulatory costs rise, I think it naturally leads to consolidation and acquisition opportunities like we’ve seen today. Certainly with a combined company we now believe that scale will address many of those concerns, and there will be a clear path to profitability.”said Dean Skurka, WonderFi’s president and interim CEO.
A new crypto project
As reported by WonderFi, lThe three companies together have more than 1.65 million registered users and more than $600 million in assets. While these numbers are small when compared to industry giants such as Binance, Coinbase, or Kraken, they are significant for the Canadian market.
“WonderFi will issue some 269,727,080 common shares to Coinsquare shareholders and 119,181,733 common shares to CoinSmart shareholders as part of the transaction. Of the combined company, WonderFi shareholders will own 38%, Coinsquare 43% and CoinSmart 19% on a partially diluted basis., highlighted the already mentioned medium.
Coinsquare, the new crypto platform
The company will be registered as Coinsquare and the merger, according to the estimation of the protagonists themselves, will take between four and six months to receive all the regulatory approvals.
CoinSquare, company that owns the majority of the shares in October had taken a very important step in the market by being the first local platform to be registered with the Investment Industry Regulatory Organization (IIROC). They offer more than 40 cryptocurrencies and 820 pairs to trade. On their website they highlight the fact of having 4.6 rating stars by their users.
“Regulation now comes first and is a competitive advantage.”said Martin Piszel, CEO of Coinsquare. A legal framework works as a defense for users in a highly volatile market.
Justin Hartzman, co-founder and CEO of CoinSmart, also spoke, who assured that “it can be expensive and time consuming to keep up with changing regulation.” youHe also stressed that now clients will be in a “regulated and safe environment.”
Given the current fear and nervousness of the financial/banking crisis in the United States, Hartzman believes that a regulated crypto space can be attractive to clients.
It is worth noting that this comes months after the crypto sector received a severe blow from the bankruptcy and subsequent disappearance of FTX (and all its allies). The Bahamas-based centralized exchange scandal is far from over: Sam Bankman-Fried was indicted for fraud and conspiracy; he pleaded not guilty.
As in many cases, North America, led by Canada, takes an important step and marks a possible future. Regulation is a field that will come sooner or later and these companies are already on the right track.
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