Bitbuy and Coinsquare, two of the largest crypto exchanges domiciled in Canada, have surpassed $1 billion CAD in assets ($736 million) under management.
According to the Dec. 6 announcement by parent company WonderFi, the two entities currently hold $1 billion CAD in clients’ cash and digital asset deposits, up from $695 million ($512 million) the third quarter.
“During the month of November, the platforms experienced a combined 16% increase in monthly active users as compared to the monthly active user count in October. The platforms also recorded a 54% increase in total trading volume,” the company wrote.
In July 2023, Bitbuy and Coinsquare merged with the decentralized finance (DeFi) platform WonderFi, which is backed by iconic Canadian businessman “Mr. Wonderful” Kevin O’Leary. The merger created a collective user base of 1.6 million Canadians among all its subsidiaries.
In November 2021, Bitbuy became a fully regulated crypto exchange in Canada after being licensed by the Ontario Securities Commission. Likewise, in October 2022, Coinsquare became the first crypto exchange in Canada to receive broker-dealer status with the Investment Industry Regulatory Organization of Canada (IIROC). During Q3 2023, WonderFi brought in a combined $9.9 million CAD ($7.3 million) in revenue. The firm claims it became cash-flow positive in October.
Currently, Canadian regulators require all crypto exchanges operating in the country to become registered or sign a legally binding undertaking pending licensing. Prominent offshore exchanges, such as Binance, ByBit, and OKX, have ceased operations in Canada as part of the new rules. In February, Canadian regulators began requiring crypto exchanges to delist unapproved stablecoins, with USD Coin (USDC) being exempt. Following the announcement, exchanges such as Kraken and Coinbase delisted Tether (USDT) and other stablecoins for Canadian users.
Related: Kevin O’Leary-backed WonderFi to buy Bitbuy parent company for $162M