A Canadian fintech firm, WonderFi, backed by billionaire Kevin O’Leary, has made a significant move by announcing its groundbreaking partnership with two major players in the realm of cryptocurrency: Bitbuy and Localcoin ATM. This significant groundbreaking partnership was announced on September 18, 2023, and is set to bolster Localcoin’s cryptocurrency ATM services throughout Canada by integrating Bitbuy’s cryptocurrency exchange, known for its deep liquidity.
Bitbuy is the first cryptocurrency exchange in Canada that has secured full regulatory approval. Earlier in 2023, WonderFi acquired Bitbuy as part of the First Ledger Corp., for a staggering amount of $162 million.
Although Localcoin is not a small player, it has one of the largest networks of cryptocurrency ATMs in Canada, with approximately 900 machines currently in operation. Localcoin captures about 33% of the total ATMs in Canada, which stands at around 2,700 ATMs. This huge number of cryptocurrency ATMs in Canada places it second after the United States in terms of cryptocurrency ATM adoption.
With this strategic partnership, Bitbuy’s digital services will now extend its reach as it covers around 50% of all cryptocurrency ATMs in Canada. Despite some crypto companies departing from the Canadian market due to regulatory changes, WonderFi’s CEO, Dean Skurka, sees the increased regulatory clarity as a magnet for institutional investors, drawing them toward cryptocurrency and digital assets in Canada.
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Furthermore, Ontario Securities Commission CEO Grant Vingoe has pointed out that more than 30% of Canadians plan to invest in crypto assets in 2023, highlighting the growing interest in the sector.
In addition to this partnership, Tristan Fong, CEO of Localcoin ATM, has exciting plans for the future. Localcoin ATM intends to launch a Localcoin Wallet app and expand the range of cryptocurrencies available at their ATMs. This expansion demonstrates their unwavering commitment to making cryptocurrency accessible to a wider audience.
In a recent report by Todayq News on July 11, 2023, the UK’s financial regulator, the FCA, took strict action against cryptocurrency ATMs, shutting down 26 out of 34 inspected since the beginning of 2023. They warned operators to comply or shut down. Using these ATMs is considered illegal, and the FCA cautions that users may inadvertently support criminal activities.