CoinSquare, Canada's longest-running crypto-asset trading platform, said the Investment Industry Regulatory Organization of Canada (IIROC) has agreed to register its membership as a trader.
CoinSquare said Wednesday that this regulatory status will now position the platform as the first registered investment trader with IIROC and a member of the market in Canada.
According to Coin Telegraph, the CoinSquare team wrote: When dealing with a registered member (IIROC), platform customers now have greater comfort and security in the knowledge that Coin Square operates with the highest level of merchant compliance and oversight under the current regulatory regime in Canada.
With the regulation, the entire Coin Square client funds will be segregated and held by authorized and insured custodians. The platform will also be required to report on its financial position regularly and maintain sufficient capital for commitments. Additionally, cash in client accounts will be protected by the Canada Investment Protection Fund in the event of bankruptcy.
Currently, Coin Square has more than 500,000 users and provides access to more than 40 cryptocurrencies, including more than 820 trading pairs from one currency to another. The exchange has facilitated nearly $5.82 billion in trades since its inception in 2014.
Canada has taken a different regulatory approach than the United States. In Canada, all cryptocurrency exchanges operating in the country must be registered or at least apply to IIROC. In June, regulators banned cryptocurrency exchange Cocoin from operating in the Canadian province of Ontario, claiming that the company had not responded to requests for information.
