Coinsquare exec’s opinions on being the first regulated crypto exchange in Canada show how far Canada has come since bad actors pushed authorities adopt a strong stance on crypto.
Bad Actors, Good Regulators
This story still haunts early Canadian cryptocurrency adopters. Gerald Cotten, co-founder of QuadrigaCX, Canada’s largest bitcoin exchange, died in India in 2014. Before his death, Cotten switched virtual wallet keys to cold storage, losing $190 million in customer funds.
The tragedy shook the nation’s bitcoin economy and made lawmakers wary of blockchain technology. Old wounds heal. Coinsquare is one of Canada’s major cryptocurrency exchanges, transacting $8 billion since 2014.
First regulated crypto exchange in Canada: Coinsquare’s CEO
In an interview with Cointelegraph’s Sam Bourgi, Coinsquare COO Eric Richmond said a regulatory mechanism is now in place to prevent repeat incidents.
“We’re doing things differently from the U.S. All crypto trading platforms in Canada must be registered with the Canadian Securities Administrators (IIROC). As we wanted to be one of the first regulated players, we submitted our application in November 2020.
Due to the new rule, bitcoin exchanges have two years to register with IIROC. Coinsquare is the only IIROC-registered cryptocurrency corporation. The company has strict standards for listing new tokens to prevent fraud.
We evaluated the technology, marketing, staff, legal difficulties, price fluctuations, etc. Compliance, corporate, legal, and security departments review his in-depth study. Understand the token. If it passes, the listing threshold is set.”