Regulatory Milestone for Coinsquare
On October 12, Coinsquare, Canada’s longest-standing cryptocurrency trading platform, announced a significant achievement: it received approval for its dealer registration and membership from the Investment Industry Regulatory Organization of Canada (IIROC). This marks Coinsquare as the first crypto-only IIROC-registered investment dealer in Canada, highlighting its commitment to regulatory compliance.
Increased Security and Compliance
With this new regulatory status, Coinsquare assures its clients that they will benefit from heightened standards of compliance and oversight. The platform stated, “In dealing with an IIROC registrant, Coinsquare clients now have the added comfort and security of knowing that Coinsquare is operating at the highest level of dealer compliance.” As part of these regulations, Coinsquare will ensure that client funds are fully segregated and stored with licensed and insured custodians.
Reporting and Capital Requirements
As an IIROC-registered dealer, Coinsquare will also be mandated to regularly report its financial standing and maintain adequate capital for liabilities. This move is an important step in enhancing user trust and ensuring that client assets are safeguarded to the highest regulatory standards. Additionally, cash held in client accounts will be protected by the Canadian Investment Protection Fund in the event of the company’s insolvency.
Coinsquare’s Market Presence
Currently boasting over 500,000 users, Coinsquare provides access to more than 40 cryptocurrencies and supports over 820 coin-to-coin trading pairs. Since its launch in 2014, the exchange has facilitated approximately $5.82 billion in trades, solidifying its status as a key player in the Canadian crypto landscape.
Canada’s Unique Regulatory Landscape
Canada has adopted a distinct regulatory framework compared to the United States, where all crypto exchanges operating within the country are required to register or apply for IIROC membership. This is evident from the regulatory action taken against the crypto exchange Kucoin in June, which was banned from operating in Ontario for failing to comply with information requests.
Conclusion
Coinsquare’s acquisition of IIROC registration signifies a pivotal moment for cryptocurrency regulation in Canada, reflecting the growing recognition of the need for compliance within the digital asset space. As the landscape evolves, Coinsquare is well positioned to offer secure and regulated trading options for Canadian investors.
