Three cryptocurrency exchanges based in Canada, WonderFi, CoinSmart, and Coinsquare, have reportedly completed a merger. The combined entity plans to invest in SmartPay, a digital asset payments platform launched by Coinsmart in 2020.

WonderFi is a public company listed on the Toronto Stock Exchange. The company operates several brands, including Coinsquare and Coinsmart. Coinsquare is a crypto marketplace that allows users to trade and manage their financial assets, while Coinsmart provides digital asset services for institutional investors.

The new entity resulting from the business combination will reportedly focus on consolidating Bitbuy and Coinsquare, according to Binu Koshy, a spokesperson of the companies quoted by the Financial Post.

Coinsmart Payment Platform

Coinsmart launched SmartPay, a platform that allows users to pay and receive payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term using cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, in 2020. According to the information on its website, SmartPay has transacted more than $500 million since it was created. The platform is regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

According to the statement issued by the parties involved in the business combination, the entities that are affiliated with WonderFi have conducted more than $17 billion in transactions since 2017; they have more than $600 million worth of assets under custody; and they have more than 1.5 million users in Canada.

Commenting on the business combination, Kevin O'Leary, WonderFi's Strategic Partner, stated: "This is a major advantage as unregistered international exchanges can no longer serve the Canadian market without adhering to the local regulations."

"Now more than ever, investors are actively seeking trading platforms that operate in harmony with the regulators," O'Leary added.

Defying Regulatory Challenges

The business combination arrives at a time smaller crypto trading platforms are filling the gap left by the larger companies leaving Canada due to regulatory challenges. Finance Magnates reported in May that Binance was exiting Canada due to the challenging policies by the market regulator in the region.

Following the collapse of the cryptocurrency exchange FTX, the Canadian Securities Administrators issued a notice that classified stablecoins as securities. The move has restricted the services of the companies issuing digital assets in the region. Additionally, the regulators issued a directive that all the cryptocurrency exchanges in the region should be registered.