The Mysterious Demise of Gerald Cotten

Four years ago, the crypto community was rocked by the sudden and unexplained passing of Gerald Cotten, co-founder of QuadrigaCX, Canada’s largest cryptocurrency exchange at the time. His untimely death in India left many questions unanswered, particularly regarding the whereabouts of almost $190 million in user funds locked away in digital wallets. Unfortunately, Cotten took the secret virtual keys to these assets to the grave, leading to one of the most infamous losses in crypto history.

A Ripple Effect on Confidence

This incident didn’t just disappear into the blockchain ether. It instigated a full-blown crisis of confidence in Canada’s budding crypto sector. Investors were left holding their metaphorical wallets as fears about the security of their funds grew louder than a toddler tantrum in a grocery store. As a result, regulators began to cast skeptical glances at blockchain technology, doubting its reliability and safety.

The Rise of Coinsquare

Fast forward to today, and it seems those old wounds are starting to heal. Coinsquare, with its impressive $8 billion in cumulative trading volume since its inception in 2014, is climbing the ranks to become one of Canada’s largest crypto exchanges. In an exclusive chat with Cointelegraph’s business editor Sam Bourgi, Coinsquare’s Chief Operating Officer Eric Richmond shared insights into how the sector is laying a stronger regulatory foundation.

The Regulatory Evolution

Unlike the U.S. market, where unregulated crypto wildness can reign supreme, Canada has introduced a solid regulatory framework for trading platforms. Richmond emphasized, “We’ve taken a much different approach than the U.S. All crypto trading platforms need to be registered with the Investment Industry Regulatory Organization of Canada (IIROC).” This requirement aims to bring credibility back to the sector, with Coinsquare leading the way as it sits in line, awaiting its official IIROC dealer status.

Ensuring Security and Integrity

Coinsquare has not only been proactive in applying for regulation but also in making sure its user base remains protected. The exchange has a strict process in place for listing new tokens, diving deep into factors like technology, marketing strategies, team backgrounds, and potential legal issues. Richmond mentioned, “We go through in-depth analysis with different teams, including compliance and security. It’s about understanding the token.”

A Tough Stance Against Non-compliance

Meanwhile, regulators in Canada are flexing their muscles. Significant actions have been taken against various exchanges, including Binance in Ontario and others like KuCoin and Bybit. The Ontario Securities Commission (OSC) has made it clear: if you’re not playing by the rules, don’t expect to stick around. The stakes are high, but it seems Canadian crypto is steeling itself for a brighter future.

Conclusion: A New Era for Canadian Crypto

While the shadow of the QuadrigaCX incident lingers, the evolution of the Canadian crypto market is undeniable. With increased regulatory scrutiny and platforms like Coinsquare preparing to lead the charge, many are cautiously optimistic that the sector can embrace a new era of trust and innovation.