WonderFi (WNDR), Coinsquare and CoinSmart as a combined entity will have a total of 1.65 million users and over $600 million in assets under custody.
On Monday, April 3, three Canadian crypto exchanges – WonderFi (WNDR), CoinSquare and CoinSmart – announced their plans to merge, creating the country’s largest regulated crypto trading platform.
Officials of the respective exchanges said that the merger would help them to operate effectively while giving a fresh edge to business growth. These three firms have a combined 1.65 million users and would have more than $600 million in assets under custody.
The news comes at a time when crypto exchanges are facing increasing regulatory scrutiny following the collapse of Crypto Exchange ftx In November 2022. In a televised interview with Bloomberg, he added:
“As regulatory costs increase I think it naturally leads to consolidation and acquisition opportunities as we have seen today. Certainly, with a combined company we now believe that the scale Would take away a lot of worries, and a clear path to profitability.
As part of the merger, WondeFi will issue approximately 269,727,080 common shares to Coinsquare shareholders and 119,181,733 common shares to CoinSmart shareholders. In the combined entity, WonderFi shareholders will own 38 percent of the company. Similarly, Coinsquare shareholders will own 43 percent of the combined entity, while CoinSmart shareholders will own 19 percent.
Popular SharkTank investor Kevin O’Leary is also a strategic investor in WonderFi. He added that this merger of three Canadian crypto exchanges sets a model for the world in terms of crypto regulations. O’Leary said: “If you can’t play ball with the regulator, you don’t exist. Canada will be a shining example of how it’s going to move across every single geography.”
Growing Crypto Regulation In Canada
Like US regulators, Canadian regulators are also tightening their grip on the crypto sector. In October 2022, Coinsquare became the first Canadian crypto platform to register with the Investment Industry Regulatory Organization (IIROC).
As such, the regulated crypto trading business of the merged entity will be “consolidated under the investment dealer registrar of Coinsquare” and the new SRO member, Coinsquare Capital Markets Ltd. “Regulation is now coming earlier and it is a competitive advantage,” Said Martin Piezel, CEO of Coinsquare.
Justin Hertzman, co-founder and CEO of CoinSmart, said that the merger will provide its customers with a “regulated, secure environment” for their money. He also added that the regulation-first approach to the crypto trading platform will give assurance to customers.
Bhushan is a Fintech enthusiast and has a great understanding of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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