Coinsquare acquires CoinSmart resulting in a merge between the two Canadian companies

Following Coinsquare’s acquisition of the Canadian cryptocurrency trading platform CoinSmart, the two are expected to merge.

According to the announcement made on Thursday, Coinsquare will manage more than 350 Canadian dollars (about $258 million) as a result of the anticipated acquisition and integration. CoinSmart will hold a pro forma 12% ownership position in Coinsquare as a result of the agreement.

After the market opened on Friday, shares of CoinSmart increased in price, rising from closing of CAD$0.18 on Thursday to a trading range of CAD$0.32 shortly after the market opened.

According to Justin Hartzman, CEO of CoinSmart, the company aims to create one of the biggest regulated crypto asset trading platforms in Canada. Despite this, he continued, the purchase will give investors “the torque needed to be in a good position entering the next bull run.”

Coinsquare CEO agrees

Martin Piszel, CEO of Coinsquare, agreed with Hartzman and stated that the company’s products will be “backed by the highest levels of regulation in the industry.” 

 “We are excited to work together to shape how the crypto industry in Canada grows and evolves, and together we will be able to offer our clients the most innovative and secure products backed by the highest standards of regulation in the industry,” Piszel stated.

As a dealer and marketplace member of the Investment Industry Regulatory Organization of Canada (IIROC), Coinsquare is actively pursuing clearance to become the first crypto asset market maker in Canada. The company previously had to deal with the Ontario Securities Commission after being accused of wash trading by Canada’s regulator.

Despite the ongoing crypto bear market which has left several crypto companies in a bankrupt scenario, the fundings, investments, and acquisition deals seem to be unaffected by the weather. Recently, as TheCoinRise reported, renowned compliance company Satschel secured $5.2 million in a seed funding round.