After the recent issues with Canadian Bitcoin exchange CaVirtex – which was forced to shut down after a security breach even though no funds has been stolen – the market is wide open for a new exchange to take its place. QuadrigaCX is one of the contenders, and it looks like CoinTrader could prove to be very stiff competition.
CoinTrader & Newnote Financial Unite Forces
In order to become a proper Bitcoin exchange that is complying with all regulatory requirements, you need to bring quite a lot of money to the table. The money transmitter license alone will cost you a few hundred thousand CAD, and that is just one of the many compliance requirements that need to be in order.
Furthermore, a Bitcoin exchange also needs to have top notch security – which costs a lot of money, as security experts are not cheap – and a well-trained staff to handle any request or complaint. Last but not least, there is the topic of being able to provide enough liquidity on both the Bitcoin and fiat currency side of the scale.
Newnote Financial Corp. has recently acquired Cointrader.net, a Canadian-based Bitcoin exchange, for the sum of CAD$ 1.18 million – both in cash and stock. Some of you may know the name Newnote Financial Corp, as it was formerly known as Wimrock Resources. The company is best known for its ventures in the world of cryptocurrency.
Newnote Financial Corp. is a publicly traded company on the Canadian Securities Exchange (CSE), which can be compared to the OTC markets in the United States. By acquiring the Cointrader.net Bitcoin exchange, there is a ver real possibility of the exchange going live on the CSE in the near future.
Note from the Author: Newnote Financial Corp is currently trading at a price of CAD$0.19 per share, with the company’s total valuation at CAD$5.77 million.
CoinTrader – Healthy Growth Before The Acquisition
Canadian Bitcoin exchange CoinTrader has seen a healthy growth over the past few months. Part of this growth can be attributed to other popular exchanges shutting down, such as the previously mentioned CaVirtex. But let’s not forget that CoinTrader added a CAD order book to their platform earlier this year.
Furthermore, CoinTrader had also inked a strategic partnership with payment processor Vogogo, which will help the company expand their operations to the US and Europe. It will be interesting to see which role Newnote Financial Corp. will play in these expansion plans, as the company had been working on its very own trading platform before acquiring CoinTrader.