Coinsquare becomes first IIROC registered crypto dealer

The cryptocurrency marketplace has been admitted to the membership of the self-regulatory organization

Coinsquare becomes first IIROC registered crypto dealer
Steve Randall

The regulation of the fast-growing cryptocurrency industry has long been a concern for investors and policymakers.

This week, Coinsquare has become the first crypto dealer and marketplace to be registered with the Investment Industry Regulatory Organization of Canada (IIROC).

The firm is Canada’s longest operating crypto asset trading platform and its IIROC registration means it is now a registered investment dealer across all of the countries’ provinces and territories.

The registration is part of Coinsquare’s aim to bridge the gap between traditional financial markets and the decentralized ecosystem.

In August, the Canadian Securities Administrators (CSA) told all crypto trading platforms operating in Canada that they were expected to give their primary regulator a pre-registration undertaking and acknowledge that they are bound by the same investor protection rules as other securities traders.

Coinsquare Capital Markets Ltd. and were the first to comply.

“If you trade crypto today in Canada, you are investing outside the fully regulated traditional financial system with its inherent safeguards and protections,” said Coinsquare CEO Martin Piszel as the registration was announced this week. “Today, Coinsquare became the only registered crypto IIROC dealer and marketplace member.  Now, for the first time, Canadians have the opportunity to invest in crypto assets, knowing that they have full IIROC protections.”

Alternative trading system

Along with Coinsquare’s new status as an IIROC investment dealer, the firm is also now approved to operate an Alternative Trading System (ATS) which it intends to develop over time to provide a liquid and transparent market, in the same way traditional equities are traded. 

The firm, which recently entered into a definitive agreement with CoinSmart Financial Inc. to purchase the crypto trading platform, believes this model will address the issue of trading in illiquid books in the current fragmented retail crypto environment.