Coinsquare Receives IIROC Registration Becoming The First Cryptocurrency Exchange In Canada

Coinsquare—first Canada’s cryptocurrency trading platform—announced that the Investment Industry Regulatory Organization of Canada (IIROC) had accepted its dealer registration and IIROC membership, according to a press release on October 12.

With this new legal standing, the company will be the first IIROC-registered investment dealer and marketplace participant in the Canadian market, including all provinces and territories.

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With the regulation, Coinsquare’s client funds will be properly separated and held by licensed and insured custodians. Additionally, the exchange will have to provide monthly financial reports and keep enough funds on hand to cover its liabilities.

Furthermore, the Canadian Investment Protection Fund will safeguard customer accounts’ capital in the case of bankruptcy. However, the exchange went ahead and registered with the IIROC right away, which enforces a stricter standard of regulation that is well-known to clients and offers the highest level of investment safety.

Within two years of receiving their interim, limited dealer license, competitors will be expected to follow the same challenging road to achieve the IIROC regulatory criteria. While they get ready for permanent IIROC registration, crypto-asset trading platforms can operate under certain restrictions by using a restricted dealer license.

Protection By IIROC For Coinsquare Users

Over 40 cryptocurrencies, including over 820 coin-to-coin trading pairings, are accessible through Coinsquare, which has over 500,000 users. Since the exchange’s launch in 2014, it has enabled deals worth about $5.82 billion.

The exchange began the pointed process of joining the IIROC before it was required to. Chief legal officer and head of regulatory relations for Coinsquare, Katriana Prokopy, said that the exchange started looking for regulatory permission two years ago.

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“Being an IIROC dealer and a member of IIROC offers customers the assurance that they’re dealing with an intermediary, a securities dealer, with all types of protections and oversight that they’re used to when they trade traditional assets,” Prokopy said. “And that hasn’t been the case up until now.”

The Canadian Investor Protection Fund, which provides restricted protection for assets held by a member fund on behalf of investors in the case of the member’s insolvency, is eligible for all IIROC members. If Coinsquare follows Celsius, CIPF will not apply to fiat kept in consumers’ accounts, but solely in the case of Coinsquare.

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