Wealthsimple Crypto, the first regulated cryptocurrency exchange, was launched in Canada yesterday, September 22nd. Custodian storage of crypto assets for the platform is carried out by the American Gemini exchange.
Wealthsimple Crypto’s public launch came shortly after the company received approval from the Canadian securities regulator in August . To date, Wealthsimple is the only cryptoasset trading platform that has been authorized to operate in the country by the Canadian Securities Administrators (CSA).
Before the public launch, Wealthsimple was available in beta, and potential users could sign up on a waiting list to be the first to test the platform. According to representatives of the exchange, at the moment 130,000 Canadians have signed up on the waiting list.
At first, Wealthsimple will only be able to trade BTC and ETH through the mobile app. Deposits and withdrawals will only be made in Canadian dollars. In addition, Wealthsimple will not store crypto assets in its own hot or cold wallets.
Blair Wiley, General Counsel for Wealthsimple, said that the custodian of the cryptocurrency is carried out by the American Gemini exchange. Working with Gemini is one of the factors that helped Wealthsimple get approval from Canadian regulators, Wiley said.
“Probably the simplest explanation is that all companies that have tried to get regulatory approval in the past wanted to do everything – buy and sell cryptocurrency for customers, operate an exchange, store cryptocurrency that customers buy […] And each of these actions involves a long list of regulatory requirements. If one business tries to do all of this, it will be much more difficult to get regulatory approval. “
As a reminder, from June 1, 2020, Canada began to regulate the activities of all cryptocurrency firms. They are now required to register with the Financial Transactions and Reporting Analysis Center of Canada (FINTRAC).