Coinsquare's Acquisition of CoinSmart: Implications for Canadian Crypto Market

Coinsquare Goes Big

In a move that could shake up the digital asset scene in Canada, Coinsquare, one of the largest cryptocurrency exchanges, has just acquired CoinSmart. The details? Well, they’re still playing coy on the price tag! However, this acquisition hints at a robust consolidation phase in the Canadian crypto space.

Strength in Numbers

As part of this deal, Coinsquare is set to take over CoinSmart’s subsidiary, Simply Digital. When the ink is dry, CoinSmart will own about 12% of Coinsquare—talk about a power shift! In fact, CoinSmart’s shares skyrocketed by 67% after the announcement—proof that in crypto, good news really moves the needle!

The Finish Line in Sight

So, what does this acquisition mean for Coinsquare? In short, it’s officially a heavyweight contender in Canada’s crypto exchange market, expanding its prowess in retail and institutional trading, payment processing, and asset custody. Founded in 2014, Coinsquare has been methodically building its offerings to meet the needs of a growing user base.

A Look at CoinSmart’s Journey

CoinSmart has its own story, having burst onto the scene in 2018 with co-founder Justin Hartzman at the helm. This entrepreneurial venture reported an impressive $16.7 million in gross revenue for 2021—a staggering 357% jump from the previous year. Talk about a bull run!

Navigating Regulatory Waters

Both Coinsquare and CoinSmart are swimming in the regulatory waters of the Canadian Securities Administrators (CSA), with Coinsquare being one of the few exchanges to pre-register with regulators. This compliance method allows them to keep operational while navigating a full review—it’s a marathon, not a sprint!

Looking Ahead: The Future is Crypto

With crypto adoption steadily rising in Canada, fueled by bullish market conditions and institutional interest, these two exchanges are poised to capture a larger fish in the vast sea of digital finance. As Justin Hartzman joins Coinsquare’s executive team, it’s safe to say exciting developments are on the horizon!