Coinsquare, one of Canada’s biggest digital currency exchanges, has partnered with global payment solutions provider Processing.com in a bid to allow its customers to buy digital currencies using credit or debit cards.
Coinsquare believes that Processing.com’s expertise in building cryptocurrency-enabled payment services will help the virtual currency venue expand its global footprint and vastly accelerate organic expansion.
This collaboration simplifies complex buying processes and open ups cryptocurrency exposure to the average users, and not just the enthusiasts.
Competition among cryptocurrency exchanges is surging amid a rush of users out of the market, drawn by the huge loss of digital currencies in December and January. With the money-losing memories of recent drops still fresh in their minds, investors are having a tough time embracing the new correction born in early February.
Coinsquare believes the development will help it compete with larger exchanges in the world, including San Francisco-based Coinbase and British exchange CEX.io. Both cryptocurrency venues were accepting only cryptocurrencies or wire transfers, but as the whole ecosystem has matured, they have also started accepting credit/debit cards.
The Toronto-based crypto platform also plans a massive $120 million IPO on the main Toronto Stock Exchange in order to expand the company’s resources overseas. In contrast to several blockchain focused firms, which rushed to list on Canada’s junior TSX Venture Exchange utilizing a reverse takeover scheme, Coinsquare prefers to sell its shares on the country’s biggest bourse in order to gain much broader attention.
Coinsquare also considers the IPO with its stricter disclosure requirements as the best way to convince investors that it’s transparent and trustworthy, particularly as the sector has been marred by disruptions, delays and hacks over the past few months.
Coinsquare’s expansion plan comes as the cloud of uncertainty continues to hover over the legal status of the digital asset class in Canada.
Following in the footsteps of several major banks globally, the nation’s largest bank by assets, Toronto-Dominion Bank (TD Bank), said Friday in an email to its customers that credit and debit cards cannot be used to purchase cryptocurrencies as “it conducts a review of the evolving market,” Financial Post reported.
The US top banks, including JP Morgan Chase, Bank of America, and Citigroup, have initiated the wave of bans earlier this month. It was followed by the UK’s lenders which last week barred its clients from using bank cards to buy the virtual coins.
However, some major banks in Canada, including Royal Bank of Canada (RBC), still allow its credit and debit cards to be used for transactions involving cryptocurrency “in limited circumstances.” The country’s second-largest bank lender, though, cautioned investors about the volatility of cryptocurrencies which “could expose them to substantially higher debt levels than they are able to repay.”