Bitbuy and Coinsquare, two of the largest crypto exchanges domiciled in Canada, have surpassed C$1 billion in assets under management ($736 million).
According to December 6 advertisement Per parent company WonderFi, the two entities currently hold C$1 billion in cash and customer digital asset deposits, compared to $695 million ($512 million) the third quarter.
"During the month of November, the platforms saw a combined 16% increase in monthly active users compared to the monthly active user count in October. The platforms also recorded a 54% increase in total trading volume," he wrote the company.
In July 2023, Bitbuy and Coinsquare merged with decentralized finance (DeFi) platform WonderFi, which is backed by iconic Canadian entrepreneur "Mr. Wonderful" Kevin O'Leary. The merger created a collective user base of 1.6 million Canadians across all its subsidiaries.
In November 2021, Bitbuy became fully regulated crypto exchange in Canada after obtaining license from 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 the third quarter of 2023, WonderFi generated combined revenue of C$9.9 million ($7.3 million). The company says its cash flow was positive in October.
Currently, Canadian regulators require all crypto exchanges operating in the country to register or sign a legally binding commitment pending obtaining a license. 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 to require crypto exchanges to delist unapproved stablecoins, with USD Coin (USDC) being exempt. Following the announcement, exchanges such as Kraken and Coinbase Tether delisted (USDT) and other stablecoins for Canadian users.
Related: Kevin O'Leary-backed WonderFi to buy Bitbuy parent company for $162 million
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