Canada’s crypto exchange landscape appears to be consolidating after Coinsquare acquired CoinSmart, one of the largest digital asset exchanges in the country, for an undisclosed sum.
On Thursday, Coinsquare announced that it has entered into a definitive agreement to purchase all of the issued and outstanding shares of CoinSmart’s wholly-owned subsidiary, Simply Digital. Once the deal is final, CoinSmart will retain an approximately 12% ownership stake in Coinsquare on a pro-forma basis.
Shares of the CoinSmart crypto exchange traded on the NEO exchange rose 67% on Friday, mostly in response to the news.
The acquisition will make Coinsquare Canada’s largest crypto exchange and expand its operational and business capabilities. In the year Founded in 2014, Coinsquare has expanded its service offerings to include retail and institutional transactions, crypto payment processing, and digital asset protection.
CoinSmart in 2011 It was founded in 2018 by Justin Hartman, who served as the company’s CEO. Following the acquisition, Hartman is set to join Consquare’s executive team.
As a publicly traded company, CoinSmart discloses quarterly financial statements. In its annual summary released on April 1, the company reported total revenue of $16.7 million in 2021, a 357 percent year-over-year increase. Retail trading volume increased by 875%, possibly reflecting the 2021 Bitcoin (BTC) bull market.
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Coinsquare is one of only two crypto exchanges operating in Canada to pre-register with their regulators as they work to fully comply with security laws. The pre-registration requirements are established by the Canadian Securities Administrators, or CSA, and allow crypto exchanges to continue operating while their full applications with the CSA are reviewed.
CoinSmart CEO, @JustinHartzman He speaks on the panel @Futurist_conf What are you talking about? # web 3 And the future of the Internet!
Also on the panel: @forgeforth_ – @Cointelegraph @GDADave – @SD_Markets
Kimberly Adams – @bridgenetwork0x
Vincent Up – @PolymathNetwork #crypto pic.twitter.com/thLF35QnaK
— CoinSmart (@CoinSmart) August 8, 2022
In an interview with Cointelegraph on the sidelines of the Futurist Conference in Toronto in August, Coinsquare Chief Operating Officer Eric Richmond explained that the crypto exchange registered with the Investment Industry Regulatory Organization of Canada, or IIROC, in November 2020.
Crypto adoption is increasing in Canada, but as in other countries, participation is largely dependent on market conditions. According to a KPMG survey, adoption is growing in institutional circles due to crypto’s perceived upside and potential for innovation.