A letter from Martin
With recent liquidity issues in the crypto market this week and the turmoil that has ensued, I wanted to confirm how Coinsquare’s position as a fully regulated IIROC investment dealer uniquely protects your account and your crypto asset investments.
Coinsquare embarked on a journey to become the first fully IIROC regulated crypto asset trading platform over two years ago. It was an ambitious roadmap, but we were convinced it was the right thing to do for our customers and the industry in general. On October 12, 2022, Coinsquare became North America’s first and only IIROC Crypto-Asset Trading Platform and alternative trading system.
While we were working with regulators, building out regulatory technology and compliance infrastructure, our global competitors were launching products like 100x margin, unregulated derivatives products, and lending out client assets. All of us have now seen the results of some of these experiments using client funds.
We at Coinsquare have focused on our core values of protecting client assets and having strong financial controls and regulatory oversight to ensure your trust.
- Client assets are segregated and held on a fully reserved basis in cold storage.
- Client assets are held at all times by external digital asset custodians, which are regulated trust companies and have insurance policies that protect those funds.
- Our custodians hold client assets in trust for the benefit of our clients. In the unlikely event that we become insolvent, your assets remain your own and are protected from our creditors.
- Coinsquare runs daily reports for our regulator that ensure client assets meet client liabilities 1:1, and we conduct an annual financial audit to confirm the same.
- Canadian Investor Protection Fund (CIPF) covers the cash in your account for up to $1M CAD. No other crypto marketplace can offer this protection.
- Coinsquare always uses its own assets to facilitate trades on behalf of our users.
- Coinsquare does not lend out or rehypothecate client assets.
We go above and beyond to protect and secure your assets, and are a leader in providing a fully transparent and secure platform. You, as the client, always have the choice to withdraw your assets; we do not hold your assets as a means to keep your business.
As the full extent of the FTX collapse continues to ripple throughout the financial markets, there are some clear lessons the industry must learn. Although some see regulation as overreaching, it plays a critical role in ensuring that these tragedies do not happen. We here at Coinsquare will push for consistent regulation of this market giving clients the oversight they deserve.