An acquisition has happened between two cryptocurrency trading platforms. One of the leading trading platforms in Canada, Consquare, announced the acquisition of CoinSmart, another Canada-based trading platform.
It appears that digital trading platforms in Canada are unifying as CoinSmart, a Canada-based crypto exchange got sold to Coinsquare, one of the leading exchanges in Canada.
During the 2021 bitcoin bull, CoinSmart announced a gross income of $16.7M as there was a surge in retail trading due to the market’s bullish trend. It was, however, sold for an unnamed price.
Coinsquare disclosed the change in ownership through an official statement released by Coinsquare on the 22nd of September. Coinsquare revealed that they reached a consensus with CoinSmart, to buy all the shares, both issued and unissued, of Simply Digital, a subsidiary of CoinSmart.
Meanwhile, the acquisition will give CoinSmart access to a 12% stake in Coinsquare on a Pro-forma. On Friday, the news of the purchase also made the CoinSmart shares surge by 67% on NEO Exchange because it is a publicly traded firm.
Consequently, Coinsquare is now one of the top digital asset’s exchanges in Canada. Coinsquare was founded in 2014. It offers digital trading activities both to individual and institutional traders.
It also allows payment with digital assets and also helps keep cryptocurrencies safe. Due to the acquisition, Coinsquare now has a more comprehensive operational and business capacity.
Justin Hartzman was one of the founders of CoinSmart in 2018. He was also the Chief Executive Officer of the firm. Reports now have it that he would get incorporated into the executive team at Coinsquare.
Before the acquisition, CoinSmart usually prepared and announced its financial statements quarterly because its shares were publicly traded. They published their 2021 annual reports on the 1st of April 2022.
The report revealed that the firm had $16.7M, a 357% increase over the years. There was an 875% increase in their retail trade, which the bullish trends must have influenced in 2021.
Crypto Regulation In Canada
On the 15th of August, the Canadian Securities Administrators (CSA) mandated all crypto exchanges to submit an undertaking ensuring that all traders on their platforms are protected.
This undertaking will permit them to operate pending the approval of their application to be fully licensed. However, only Coinsquare and Crypto.com had pre-registered with the regulatory body.
In Canada, the adoption of digital currency has increased. The advantages attached to digital assets also resulted in increasing institutional adoption. However, market situations do influence participation.