Yesterday, September 22, the first regulated cryptocurrency exchange Wealthsimple Crypto was launched in Canada. Custodial storage of crypto assets for the platform is carried out by the American Gemini exchange.
The public launch of Wealthsimple Crypto took place shortly after the company received approval from the canadian securities regulator in August. To date, Wealthsimple is the only platform for trading crypto assets that has been authorized to work in the country by the securities Administrators of Canada (CSA).
Before the public launch, Wealthsimple was available in beta, and potential users could sign up for a waiting list to be the first to test the platform. According to the exchange, 130,000 Canadians have signed up for the waiting list so far.
At first, only BTC and ETH trading via the mobile app will be available on Wealthsimple. Deposits and withdrawals will only be made in canadian dollars. In addition, Wealthsimple will not store cryptocurrency assets in its own hot or cold wallets.
Wealthsimple General counsel Blair Wiley said that the custodial storage of cryptocurrency is carried out by the American Gemini exchange. According to Wiley, the collaboration with Gemini is one of the factors that contributed to Wealthsimple getting Regulatory approval in Canada.
“Probably the simplest explanation is that all the companies that tried to get regulatory approval earlier wanted to do everything – buy and sell cryptocurrency for customers, manage the exchange, store the cryptocurrency that customers buy […] And each of these actions involves fulfilling a long list of regulatory requirements. If one business tries to do all this, it will be much more difficult to get regulatory approval.”
Recall that from June 1, 2020, Canada began to regulate the activities of all cryptocurrency firms. They are now required to register with the financial analysis and reporting center of Canada (FINTRAC).