Coinsquare, one of the world’s premier cryptocurrency companies, releases the following statement regarding the QuadrigaCX issues and other Coinsquare matters:

In light of the recent press regarding QuadrigaCX, Coinsquare feels it is important to highlight that not all digital asset trading platforms are created equal. To this end, Coinsquare would like to take this opportunity to confirm that unlike many trading platforms, Coinsquare stores over 97.5% of its digital assets in cold storage dispersed across multiple locations. Access to cold storage and Coinsquare’s servers is strictly controlled with strong encryption and hardware key devices following the industry’s best practices. The private keys are also recoverable through a strict disaster recovery plan, should it ever need to be executed. Coinsquare does not rely on a single individual to protect the safety of our clients’ assets.

Coinsquare’s internal protocols ensure that all assets and liabilities are systematically checked on a recurring basis to ensure the timely detection of anomalous activities and potential issues. Withdrawals are also manually confirmed by our staff, who on both a pre and post trade basis monitor the platform and their clients to identify (and report) suspicious activities.

Coinsquare maintains a reserve ratio of no less than 110% of client assets over its liabilities, at all times. The company also conducts internal financial audits and is subject to external independent third-party audits. We have completed external independent third-party audits for our 2015, 2016 and 2017 financials.

Coinsquare is proud to have banking relationships with a number of Schedule I Canadian banks, including one of the Big Five. Our strong banking relationships are built on trust and an overwhelming commitment to compliance controls, ensuring that our clients’ assets are not subject to being frozen. Coinsquare has developed an industry leading compliance program, including an anti-money laundering and anti-terrorist financing program (“Compliance Program”) that is second to none. Coinsquare is one of the few firms globally to have successfully completed an independent third-party review of its Compliance Program.

Simply put, the issues faced by QuadrigaCX are not issues at Coinsquare.

Coinsquare’s Approach To Regulations In Canada And Beyond

Notwithstanding the fact that regulations in the digital asset space are extremely limited, Coinsquare has taken on the cost of developing and implementing its Compliance Program in anticipation of upcoming regulations. Unlike many competitors, Coinsquare is in it for the long haul, and has made many decisions to turn away a great deal of business in order to remain focused on only legitimate trading and related activities. We do not hide from regulators – we reach out to them and provide our recommendations to ensure that the ultimate cryptocurrency market will thrive.

Coinsquare has forged strong relationships with the applicable regulatory authorities in both Canada and the United States. We are looking forward to being registered as a regulated securities trading platform in Canada and in the US in 2019. While we continue to remain focused on the Canadian market to ensure we do not lose our leadership position, we are aggressively looking to scale our soon to be regulated trading platform in other jurisdictions, specifically in Europe, where Coinsquare has already undertaken a targeted launch.

Coinsquare has been a willing and frequent collaborator with all levels of regulators and enforcement agencies on a cross-border basis when it comes to identifying and preventing unscrupulous activities on the trading platform. We take great pride in our ability to effectively partner with these agencies and organizations to stem manipulative activities.

Consistent with our vision of becoming a 21st century financial institution, Coinsquare’s wholly-owned asset management subsidiary, Coincapital Investment Management (“CCIM”), is Canada’s first technology focused fund manager. CCIM is registered as an Investment Fund Manager, Portfolio Manager and Exempt Market Dealer, and currently has two ETFs listed for trading on the Toronto Stock Exchange under the the symbols “THNK” and “LDGR”.

Coinsquare’s Position In The Market

As reported by BetaKit, Coinsquare recently laid off 40 of its 150 employees. Given the current pause in the market, and having scaled from 2 partners to a company of 150 people in a 12-month period, some tough decisions had to be made. Coinsquare remains a very healthy company with a roughly $40 million balance sheet.

Coinsquare has raised over $60 million from investors, including Fidelity Investments Canada’s funds. Cannacord Genuity and Cormark Securities have represented Coinsquare in previous financings and completed their own diligence on the company before inviting their investor base to participate in our financing rounds.

Coinsquare’s position in the digital asset market in Canada is unmatched. We have created value with our regulatory and banking relationships, trust of our market, and our strong brand and a customer base of nearly 300,000 Canadian registered users. Coinsquare is extremely well positioned from a technology, regulatory and financial perspective to lead the industry in the digital asset space in Canada and ultimately globally.

Not everything is perfect at Coinsquare. As most businesses face challenges when their market faces challenges, Coinsquare is no different. Coinsquare’s explosive growth also created several challenges. Coinsquare is a startup with multiple new lines of business that remain in their testing period while we evaluate their ability to scale. Not everything we work on succeeds, and not everyone we bring into the business is a fit. With market headwinds, the advancement of our new business units is even more challenging. We have changed the way we operate, and we have scaled down some investments to ensure we have more than enough runway to allow for market conditions to improve. The company remains incredibly positive about the likelihood of success across our wide range of newly tested business units.

Unfortunately, the news about QuadrigaCX is yet another “stain” on the industry as a whole. We know first hand and fully appreciate the challenges and complexities involved in operating a digital asset trading platform in this market. Coinsquare has moved in a slow and deliberate way in order to protect ourselves and our customers from issues like those faced by other exchanges. Our preference has been, and will continue to be, to move strategically in advancing of our business to ensure the health of our company and in turn the security of our clients’ assets.

Canadians should be careful in selecting the companies they choose to do business with, whether in cryptocurrency trading, or otherwise. Coinsquare has invested heavily in building a trusted offering for our clients. We understand people trust us with their hard-earned money, and we take that very seriously.

Coinsquare was recognized as the leading Blockchain company in Canada at the 2018 FinTech and AI Awards and named by LinkedIn as one of Canada’s top technology companies. We look forward to continuing to lead in Canada and beyond. We are on a mission to change the world. Come join us.

Release originally published on Newswire.