Leading crypto exchange, FTX, has made a move that hints that it might be having a branch in Canada soon. FTX bought Calgary-based Bitvo Inc. Bitvo Inc. is one of the few crypto exchanges with regulatory approval from all the provinces and securities commissions in Canada.
The FTX purchase is huge following current conditions in the crypto market. Crypto prices continue to dip towards multi-year lows. These conditions have forced many crypto firms to reduce their staff strength.
Popular crypto lender, Celsius network, has paused operations. Hence, millions of its users feel neglected. Recently, Coinbase and Robinhood have reduced their employee workforce significantly.
More About FTX’s Bitvo Acquisition
The amount involved in FTX’s Bitvo purchase isn’t revealed to the public. However, the valuation is expected to close by Q3 2022, pending approval from the appropriate authorities.
A joint statement from both companies states that users on each platform won’t witness any changes over the short term. However, they state that there would be the incorporation of features from either platform before the year ends.
The statement further confirms that there would be no changes to staff strength following the deal. Bitvo CEO, Pamela Draper, commented on the acquisition. She said, “this deal is a testament to FTX’s long-term commitment to the crypto sector. It shows their willingness to keep expanding their network despite the current bear conditions of the market.”
Worrying Crypto Market Conditions
On June 16, bitcoin lost 30 percent of its value over seven days. The leading digital asset traded slightly above $20K. BTC remains 70% off from its peak value of about $69K last November. As it always happens, all the altcoins also experienced a price drop like BTC.
Leading altcoin, ETH, lost 10% from its previous day’s value to trade at $1.1K. That price represents its lowest since 2020. FTX founder, Sam Bankman-Fried (SBF) said he isn’t scared of market tumbles. According to him, “markets will always do what they’re going to do.”
In a recent interview, SBF stated that his company had some useful discussions with Alberta authorities. He said the actions that will follow the discussions would enable Canada to play a leading role in crypto policy and frameworks worldwide.
Alberta Jobs’ Minister, Doug Schweitzer, also praised FTX’s Bitvo acquisition, especially in the current crypto market circumstances.
In its throne speech earlier in the year, Schweitzer stated that the Alberta government would provide total support for crypto companies in the province. He added that the government would make the right efforts to ensure that Alberta is a global crypto innovation and development leader.
While commenting on FTX’s Bitvo acquisition, Schweitzer said, “FTX’s launch in Calgary will enhance our reputation. It would also position us as a leader in new technology innovation, including blockchain technology development.”
According to SBF, FTX is looking at expanding to all Canadian provinces and not Alberta alone. He said, “we want to work in provinces with friendly crypto policies.”
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