Reports said that Coinsquare, Canada's longest-operating crypto asset trading platform, announced that the Investment Industry Regulatory Organization of Canada (IIROC) had approved its dealer registration and IIROC membership.
It has been reported that this regulatory status will now position Coinsquare 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."
However, with the regulation, Coinsquare's client funds will be fully segregated and kept by licensed and insured custodians. Coinsquare will also be required to report its financial standing regularly and maintain adequate capital for liabilities. In addition, cash held in client accounts will be protected by the Canadian Investment Protection Fund in the event of insolvency.
The report said that currently, Coinsquare has more than 500,000 users and offers access to over 40 cryptocurrencies, including more than 820 coin-to-coin trading pairs. The exchange has facilitated approximately $5.82 billion in trades since its inception in 2014.
Canada has taken a different regulatory approach than the United States. In Canada, all crypto exchanges operating in the country must be registered or at least apply to the IIROC.
Thus, in June, regulators banned the crypto exchange Kucoin from operating in the Canadian province of Ontario, alleging that the firm did not respond to information requests.