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On the 12th of October, Coinsquare announced that IIROC had approved its dealer registration and IIROC membership.
The Investment Industry Regulatory Organization of Canada (IIROC) has approved Coinsquare as a member of Canada’s top self-regulatory organization. This makes the Toronto-based crypto exchange the first crypto-native platform to join the organization. Canada makes it compulsory for all exchanges operating within the country to be registered or at least apply to the IIROC. Announcing the registration requirement, the Canadian Securities Administrators (CSA) warned that “CSA members may take action if a crypto trading platform is not prepared to file an undertaking or does not abide by the terms of an undertaking.”
The Canadian authority takes this seriously and has been moving on to ensure compliance. In June, Kucoin was banned from operating in Ontario. The firm’s allegation was that it failed to respond to the regulators’ information request. Coinsquare’s chief legal officer and head of regulatory affairs, Katrina Prokopy, revealed that the exchange has been seeking regulatory approval for two years.
Coinsquare Becomes First Crypto Exchange to Join IIROC
On the 12th of October, Coinsquare announced that IIROC had approved its dealer registration and IIROC membership. The company also got the nod to operate as a regulated alternative trading system in the future. Fulfilled as the first crypto-only IIROC-registered investment dealer and marketplace member in Canada, the Coinsquare team wrote:
“In dealing with an IIROC registrant, Coinsquare clients now have the added comfort and security of knowing that Coinsquare is operating at the highest level of dealer compliance and oversight under the existing regulatory system.”
Additionally, funds of the exchange’s clients are now under the management of licensed and insured custodians. Coinsquare will also have to consistently report its financial position and own sufficient capital for liabilities. All investors need security assurance on their investments. As such, the Canadian Investment Protection Fund protects the cash held by the Toronto-based crypto exchange’s client account in case of insolvency. IIROC members are also automatic members of the Canadian Investor Protection Fund. This offers limited protection in the event of bankruptcy.
Prokopy spoke about what clients are about to enjoy after the regulatory approval.
“Becoming an IIROC dealer and member of IIROC, it gives clients the security that they’re dealing with an intermediary, a securities dealer, with all the sorts of protections and oversight that they’re familiar with when they trade traditional assets.”
Since its launch in 2014, Coinsquare has onboarded thousands of users, giving them access to different crypto assets. The exchange currently has over 500,000 users accessing more than 40 coins. In addition, its customers can access over 820 coin-to-coin trading pairs. Since Coinsquare began operation, it has facilitated about $5.82 billion in trades.