Coinsquare has acquired CoinSmart, a publicly traded cryptocurrency exchange

Published on:

Last Updated on January 13, 2023 by Bitfinsider

The crypto exchange landscape in Canada appears to be consolidating after Coinsquare, one of the country’s largest digital asset trading platforms, acquired CoinSmart for an undisclosed sum.

Coinsquare announced on Thursday that it had entered into a binding agreement to acquire all issued and outstanding shares of CoinSmart’s wholly-owned subsidiary Simply Digital. On a pro-forma basis, CoinSmart will own approximately 12% of Coinsquare once the transaction is completed.

CoinSmart crypto exchange shares, which trade on the NEO Exchange, were up 67% on Friday, owing largely to the news.

Coinsquare becomes one of Canada’s largest cryptocurrency exchanges, and its operational and business capabilities are expanded as a result of the acquisition. Coinsquare, which was founded in 2014, has expanded its service offerings to include retail and institutional trading, cryptocurrency payment processing, and digital asset custody.

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

CoinSmart, as a publicly traded company, releases its financial statements quarterly. The company reported $16.7 million in gross revenue in 2021, a 357% increase year on year, in its annual summary released on April 1. Retail trading volume increased by 875%, indicating that the Bitcoin (BTC) bull market of 2021 has begun.

Coinsquare is one of only two cryptocurrency exchanges in Canada that have pre-registered with their primary regulators as they work toward full compliance with securities laws. The Canadian Securities Administrators, or CSA, established the pre-registration requirements, which allow crypto exchanges to continue operating while their full applications with the CSA are being reviewed.

Crypto adoption is increasing in Canada, but as in other countries, participation is largely determined by underlying market conditions. According to a KPMG survey, institutional adoption is also increasing due to crypto’s perceived upside and innovative potential.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.