Despite sagging prices in many of the more popular cryptocurrencies, exchanges continue to invest in cryptocurrencies with the hope that eventually, the technology catches up to society’s needs. Payment processing coins should continue to remain popular as cash transfers such as Venmo experience robust volumes. News that Coinsquare, Canada’s largest cryptocurrency exchange, is planning to expand into Japan, shows the drive to secure international customers across the globe.
Coinsquare is one of Canada’s most secure digital asset trading platforms for cryptocurrencies. They claim they have not lost a single coin since its establishment in 2014, while allowing investors to trade cryptocurrency. Their goal is to form a financial service company that is anchored in blockchain technology. Coinsquare uses common security measures to secure cryptocurrencies as well as the privacy of their users, including two-factor authentication and cold storage of 95% of funds. Cold storage is a process of taking currencies offline to secure them in another cloud destination. In addition, Coinsquare is actively involved in cryptocurrency mining. Its not just an exchange but has enhanced its investment opportunity by arbitraging cryptocurrencies that are listed on other exchanges. By investing in its mining business, it will be in a strong position when prices begin to rise again.
Coinsquare in the News
Coinsquare has been in the news this week as it announced the launch of Coinsquare Licensing. This is a white label process that allows other exchanges to use the Coinsquare software to develop a crypto currency exchange. More importantly, it appears the company is increasing its business development by expanding outside of Canada. The company is planning to join forces with DLTA 21 Blockchain Corp to enter the Japanese market using Coinsquare licensing to advance its software offerings.
Japan has 16 government-approved cryptocurrency exchanges that are allowed to operate crypto platforms. Their activities are regulated by the Japanese Financial Services Agency. Despite very tight regulation, the FSA in Japan has confirmed that more than 100-exchanges have expressed interest in entering the Japanese market.
Earlier this year, Coinsquare showed strong interest in raising capital and monetizing their business. Coinsquare planned an IPO issuing shares of the company on the Toronto Stock Exchange. While there are still plans to potentially move forward in September, the decline in values of cryptocurrency trading could place the IPO on hold. The company has had a couple of rounds of financing which has increased the value of its private shares.
Coinsquare raised $30 million in the most recent round of equity financing, which took place in early February. The capital raise was lead by the financial company Canaccord Genuity. The funding is geared to expand globally which has now come to fruition with its plan to enter the Japanese market. The company has also been a help to the Canadian economy with hiring plans to increase headcount by approximately 200 employees by the end of the Q3 2018.