Canadian cryptocurrency exchanges Bitbuy and Coinsquare have seen tremendous growth recently, surpassing $1 billion CAD in total client assets according to parent company WonderFi. This represents major expansion compared to the $695 million CAD reported just last quarter. The significant increase demonstrates these platforms’ rising prominence in Canada’s crypto market.
User engagement is also up on Bitbuy and Coinsquare. There was a 16% monthly jump in active users from October to November, along with a 54% surge in total trading volume pointing to users trading more actively.
Regulatory compliance has been a priority for these Canadian exchanges. Bitbuy became fully regulated in 2021 after getting approved by the Ontario Securities Commission. Coinsquare then obtained broker-dealer status from the Investment Industry Regulatory Organization of Canada in 2022. Their 2023 merger with decentralized finance platform WonderFi, backed by businessman Kevin O’Leary, combined over 1.6 million Canadian users. This consolidation mirrors wider industry trends.
WonderFi posted $9.9 million CAD in revenue last quarter. It also reported becoming cash-flow positive in October, exhibiting financial stability despite crypto’s volatility.
Canada’s regulatory environment continues evolving, especially around crypto trading platforms. Regulators now mandate registration or legal undertakings for all exchanges while licensing is pending, aiming to improve security and reliability. Major offshore sites like Binance, ByBit, and OKX have since halted Canadian operations in response. Stablecoin delisting requirements have also forced platforms such as Kraken and oinbase">Coinbase to remove Tether and others for Canadian users.
These stricter regulations ultimately seek to protect Canadian investors and maintain financial system integrity. With their demonstrated compliance, Bitbuy, Coinsquare, and other domestic crypto exchanges seem well-positioned to lead the evolving market.
