- The resulting entity is one of the biggest regulated crypto investing ecosystems
- It has more than 1.6 million users and over $600 million in assets under custody
Leading Canadian fintech company Mogo announced that Coinsquare Ltd., WonderFi Technologies, and CoinSmart Financial have completed a historic business combination, Bankless Times learned from a press release. Mogo had a 34% ownership stake in Coinsquare.
The biggest crypto investing ecosystem
WonderFi, the resulting entity, becomes one of the biggest regulated crypto investing ecosystems in the country. It shares this status with its registered operating subsidiaries.
It will offer Canadians a wide variety of diversified services and products, including institutional and retail crypto trading, digital asset custody, staking products, and B2B crypto payment processing. It will include gaming and sports betting soon.
More than 1.6 million Canadian users
The new entity’s components have transacted over $17 billion since 2017. Its registered users are more than 1.6 million Canadians and it has over $600 million in assets under custody. With around 14%, Mogo owns the biggest share of the entity.
Mogo President and CFO Greg Feller said:
We congratulate the companies on completing this milestone transaction, creating a unique investment opportunity with the leading crypto exchange in Canada. Mogo shareholders move forward with meaningful ownership in a public company with the only fully regulated crypto exchange, as well as scale and diversification that we believe positions them well to benefit from long-term growth trends in the industry and to build value for shareholders over time.
Canada remains crypto-friendly
The Canadian government has shown a generally positive attitude towards cryptocurrencies and blockchain technology, and there are various initiatives and regulations in place to support their development and adoption.
Cryptocurrencies are treated as a commodity or property for tax purposes. Cryptocurrency exchanges operating in Canada are required to register with FINTRAC as money services businesses (MSBs) and comply with AML and KYC regulations. This helps provide some level of consumer protection and security.
