Coinsquare acquires public cryptocurrency exchange CoinSmart

Author Zhdanov read 3 min views 8 Posted on 09/23/2022 Updated on 09/23/2022

Canadian cryptocurrency exchanges appear to be consolidating after Coinsquare, one of Canada’s largest Crypto asset trading platforms, acquired CoinSmart for an undisclosed amount.

On Thursday, Coinsquare announced that it had reached a definitive agreement to purchase all issued and outstanding shares of Simple Digital, a wholly-owned subsidiary of CoinSmart. After the transaction, CoinSmart will officially own about 12% of Coinsquare.

Shares of NEO-listed cryptocurrency exchange CoinSmart surged 67% on Friday, largely in response to the news.

The acquisition makes Coinsquare one of Canada’s largest cryptocurrency exchanges and expands its operations and business capabilities. Founded in 2014, Coinsquare has expanded its services to include retail and institutional trading, cryptocurrency payment processing and Crypto asset custody.

CoinSmart was co-founded in 2018 by Justin Hartzman, who also served as the company’s CEO. Following the acquisition, Hartzman will join the Coinsquare executive team.

As a public company, CoinSmart discloses financial statements on a quarterly basis. In its annual report released April 1, the company reported total revenue of $16.7 million in 2021, up 357% from last year. An 875% increase in retail sales likely reflects a Bitcoin (BTC) bull run in 2021.

On the topic: Canada’s new opposition leader is a Bitcoin enthusiast

Coinsquare is one of two cryptocurrency exchanges operating in Canada that are pre-registered with their key regulators as they work to fully comply with securities laws. The Canadian Securities Administration (CSA) established pre-registration requirements and allowed cryptocurrency exchanges to continue operating while their full CSA applications are pending.

Coinsquare COO Eric Richmond explained in an interview with Cointelegraph on the sidelines of the Toronto Futurists Conference in August that the cryptocurrency exchange registered with the Investment Industry Regulatory Organization of Canada (IIROC) in November 2020.

Crypto adoption in Canada is on the rise, but like other countries, participation is largely dependent on underlying market conditions. According to a KPMG survey, the adoption of cryptocurrencies in the institutional world is also increasing due to the perceived positive and innovative potential of cryptocurrencies.

Source of information: Compiled from CRYPTOHAMSTER by 0x information.The copyright belongs to the author Zhdanov, and may not be reproduced without permission

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