Canadian Crypto Exchanges Achieve Milestone Growth

Maxwell Mutuma
December 7, 2023 Updated October 29, 2024
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bitbuy and Coinsquare, top crypto exchanges in Canada, have collectively surpassed $1 billion CAD in client assets. This milestone, announced on Dec. 6 by parent company WonderFi, represents significant growth from the $695 million CAD recorded in the third quarter. The increase in assets underlines the exchanges’ expanding influence in the Canadian cryptocurrency market.

The announcement details a noticeable increase in user engagement on these platforms. In November, there was a 16% rise in monthly active users compared to October. Additionally, the platforms witnessed a 54% surge in total trading volume, indicating heightened user trading activity.

Canadian Crypto Exchanges Embrace Regulatory Compliance

Bitbuy and Coinsquare have made notable strides in regulatory compliance, a crucial aspect for Canadian crypto exchanges. In November 2021, Bitbuy achieved a landmark by becoming fully regulated after obtaining a license from the Ontario Securities Commission. Following suit, Coinsquare obtained broker-dealer status from the Investment Industry Regulatory Organization of Canada (IIROC) in October 2022.

July 2023 marked a significant development for these exchanges with their merger with WonderFi, a decentralized finance (DeFi) platform. This strategic move, backed by Canadian businessman Kevin O’Leary, amalgamated a user base of 1.6 million Canadians across all subsidiaries. This merger reflects the growing consolidation trend in the cryptocurrency industry, particularly in Canada.

In the third quarter of 2023, WonderFi reported a combined revenue of $9.9 million CAD. The company also announced that it became cash-flow positive in October, showcasing its financial stability amidst the fluctuating crypto market.

Canadian Regulation Spurs Crypto Market Changes

The regulatory environment in Canada has been evolving rapidly, especially concerning Canadian crypto exchanges. Canadian regulators now mandate that all crypto exchanges operating within the country be registered or sign a legally binding undertaking while awaiting licensing. This move aims to enhance the security and reliability of cryptocurrency transactions in Canada.

Prominent offshore exchanges like Binance, ByBit, and OKX have halted their operations in Canada in response to these regulations. Furthermore, Canadian regulators started requiring crypto exchanges to delist unapproved stablecoins, except USD Coin, in February. This led to platforms like Kraken and Coinbase delisting Tether and other stablecoins for Canadian users.

This regulatory shift aims to protect investors and maintain the financial system’s integrity. Given their compliance with these stringent regulations, Canadian crypto exchanges are in a unique position to lead the market.

Read Also: US Senate Welcomes Bill to Crackdown on Decentralized Finance

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.