Leading digital asset trading platform FTX is expanding its global reach with the purchase of a Canadian crypto resource stage called Bitvo. As of yet, there have been no accurate details released regarding the deal, though it appears the procurement will be completed during Q4 of 2022.
Despite the current bear market, FTX continues to expand and looks to develop the crypto space. The newly acquired asset will continue its primary function of serving the American market.
FTX Moves Into Canada
FTX has been in the headlines a lot recently, with the company’s CEO Sam Bankman-Fried working to provide a trading product with major financial investment firm Goldman Sachs. Bankman-Fried recently confirmed in an interview with Bloomberg that the company has billions of dollars for acquisitions.
Bitvo is enlisted with FINTRAC, which is Canada’s monetary knowledge organisation, meaning they are registered as a cash administration business in the virtual resource specialist co-op classification.
A little over a month ago, FTX overtook Coinbase as the second-biggest cryptocurrency exchange in the United States, With many of FTX's rivals, including Coinbase and Kraken, have been laying off staff and receding job offers.
One would imagine one of the big motivators for purchasing Bitvo, was the fact the company is enrolled as a limited seller under the protection laws of all regions and domains in Canada.
What Next For The Bitvo Team?
The company has been operating since 2018 and has a fairly sizable workforce. The plan for the takeover will be to integrate the existing Bitvo team with the FTX global team. While the process isn’t likely to be quick, it’s an exciting time for both companies as FTX looks to expand and evolve the currency Bitvo product.
Bitvo CEO Pamela Draper stated that she was excited about digital asset trading in Canada and how the partnership could be prosperous for both parties.
It’s worth mentioning that FTX s biggest rival Binance pulled out of trading in Canada, having been found to ignore the country’s crypto guidelines. With FTX positioned the capture the Canadian market, this is a huge move for a company looking to move into the top spot of the world’s most popular crypto exchange.