Canada: Coinsquare Acquires CoinSmart, Creates Largest Crypto Exchange in the Country

Coinsquare, a Canadian crypto exchange that is the oldest digital asset firm in the country, has agreed to acquire CoinSmart – a crypto marketplace that is registered with the Ontario Securities Commission. The combination of the two firms will create the largest crypto exchange in Canada.

According to Coinsquare, a definitive agreement was signed yesterday (September 22, 2022) to acquire all outstanding shares in Simply Digital Technologies, Inc., the owner, and operator of the CoinSmart crypto trading platform. Following the completion of the transaction, CoinSmart is expected to hold approximately ~12% ownership stake in Coinsquare on a Pro-forma basis.

The strategic acquisition will bring the two platforms together providing users with a diverse and compliant digital asset exchange for both individual and institutional traders. It will also offer crypto custody and crypto payment processing.

Coinsquare reported that it is in the final stages of approval to become Canada’s first crypto asset trading platform regulated as an Investment Industry Regulatory Organization of Canada (IIROC) dealer and marketplace member.

Coinsquare CEO Martin Piszel called the acquisition a monumental and exciting milestone for both firms:

“The cryptocurrency market is going through immense change with regulators defining a roadmap for platforms to operate in Canada. This has led to an ever-increasing cost structure and additional complexity in operating a viable crypto exchange.  We feel that scale and operational efficiency matter, and we are well positioned to play a leading role in defining the space in Canada.”

“Today is an exciting day for all of us at CoinSmart,” said CoinSmart CEO Justin Hartzman. He added that they are thrilled to be working with the Coinsquare team stating the combined entity will be well positioned to pursue an “aggressive expansion plan.”

“While the crypto market is in the building phase of its life cycle, this transaction will provide the torque needed to be in a favourable position entering the next bull run.”

Coinsquare provided a list of benefits of the transaction:

  • One of Canada’s Largest Crypto Asset Trading Platforms: the combined company will have transacted over $10 billion in crypto transactions since January 2018 with a combined user base in excess of 1 million.
  • Complementary Platforms Leading to Synergies: Significant revenue and cost synergies via cross-selling opportunities and cost rationalization.
  • Speed-to-market: leverage combined technologies to optimize tech stack and bring new features, functionality, and products to market faster.
  • New Business Lines to the Coinsquare Portfolio: such as SmartPay, an easy way to accept crypto payments by converting crypto to fiat with same-day payouts.
  • Enhanced Education Portal: with CoinSmart’s Get Smart Hub, the community will have a robust destination for Crypto knowledge and learning tools – making learning easy and accessible for everyone.
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