Wealth Simple Establishes Its Digital Currency Exchange
FinTech startup Wealth Simple (based in Toronto, Canada) has initiated its own cryptocurrency trading platform for those looking to potentially trade both bitcoin and Ethereum.
Wealth Simple Introduces a Crypto Trading System
The company’s claim to fame thus far is that all trades are commission free, meaning that customers will not pay any additional fees while engaging in trades. While the exchange was developed several months ago, it has existed up until this time only in private beta mode. There was no user waitlist. Now, customers can engage in sales, buys and trades alike within the Wealth Simple app. Withdrawals and deposits are available in Canadian dollars, and customers can gain access to trading regardless of the time or day in question.
When it comes to crypto exchanges, Canada doesn’t have the most solid record or reputation. For example, Quadriga CX at one point served as one of the nation’s largest exchanges, but that company has been marred in scandal over the past two years ever since its founder Gerald Cotten passed while performing charity work in India.
Cotten was allegedly the only man holding the private keys necessary for access to the exchange. No other executive was blessed with the knowledge of this information, so when he passed, access to the exchange potentially became impossible. As a result, customers could not withdraw their digital funds, which resulted in long-term harassment of Cotten’s widow.
When it became clear that she was unable to make any magic happen, customers took legal action and initiated a class-action suit against the exchange. From there, it came out that Cotten may have embezzled user funds and engaged in other questionable activity prior to his death.
But it would be wrong to assume that simply because one company in the crypto industry does something wrong that others will follow suit, and judging from the protocols thus far taken by Wealth Simple, it seems like executives are serious about ensuring their company does things right. After first announcing that it would step into the crypto space last July, Wealth Simple garnered approval from the Canadian Securities Administrators (CSA) in August, which enabled a two-year testing period for the company’s new crypto exchange.
Regulation Is Heavy
Since then, Wealth Simple has entered the regulatory hindsight of more than a dozen provinces within Canada. It is also the only crypto exchange with permission by the CSA to operate in the country. As many as 130,000 people are looking to take part in early trades, the company said in a statement.
The company has also mentioned, however, that it is not offering any custody services at this time, and that no crypto will be stored in the company’s own hot or cold wallets. Customers are responsible for their own funds, and thus the company will not be liable for any potential losses.
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