Bitbuy and Coinsquare, two prominent crypto exchanges in Canada, have collectively surpassed the management of assets exceeding 1 billion Canadian dollars ($736 million), as announced by their parent company, WonderFi, on December 6. This achievement represents a notable increase from their third-quarter asset management of 695 million CAD ($512 million).
The companies observed a significant growth in user engagement, with a 16% increase in monthly active users in November compared to October, and a substantial 54% rise in total trading volume. The merger of Bitbuy and Coinsquare with WonderFi, a decentralized finance (DeFi) platform backed by Canadian businessman Kevin O’Leary, in July 2023, has expanded their combined user base to 1.6 million Canadians.
Regulatory compliance has been a key focus for these exchanges. Bitbuy received its regulatory license from the Ontario Securities Commission in November 2021, while Coinsquare was granted broker-dealer status by the Investment Industry Regulatory Organization of Canada in October 2022. WonderFi reported a revenue of 9.9 million CAD ($7.3 million) in the third quarter of 2023 and reached a state of cash-flow positivity in October.
In response to Canadian regulatory requirements, all crypto exchanges operating in the country must now be registered or adhere to a legal agreement pending licensing. This regulation has prompted major offshore exchanges, including Binance, ByBit, and OKX, to cease their operations in Canada. Additionally, in February, Canadian exchanges started to delist unapproved stablecoins, with the exception of USD Coin (USDC). This led to platforms like Kraken and Coinbase removing Tether (USDT) and other stablecoins for their Canadian clientele.
