- Bitbuy announced the news on Wednesday, claiming that the Ontario Securities Commission (OSC) and the Canadian Securities Administrators had given their approval (CSA).
- The company mentioned liquidity extensions to cover large-volume trades, especially for institutional players, as one of the benefits of the regulatory licence.
Unlike other platforms that have only secured licenses to operate as investment dealers or brokers, Bitbuy claims to be the only Canadian crypto startup to be both a registered marketplace and an investment dealer.
Bitbuy’s broker and marketplace approval will allow the exchange to no longer be required to route its clients’ trading orders to third-party organizations outside the United States. Bitbuy noted in the statement that “with this OSC / CSA ruling, Bitbuy will be the first trading platform to provide Canadians a fully integrated solution for buying and selling digital assets on a Canadian regulated marketplace.”
The company mentioned liquidity extensions to cover large-volume trades, especially for institutional players, as one of the benefits of the regulatory license.
Bitbuy also mentioned that being a regulated broker and marketplace will provide its customers with more transparency when trading cryptocurrencies on the exchange.
Bitbuy’s regulatory certification comes as Canadian regulators continue to press for tighter regulation of cryptocurrency exchanges. In 2020, the CSA determined that the majority of platforms were subject to national securities regulations.
Regulators in Canada have since taken action against many cryptocurrency exchanges, including Poloniex and Kucoin.