- Wealthsimple Crypto is Canada’s first regulated crypto exchange.
- It offers Canadians a simple and efficient way of buying and selling cryptocurrencies, particularly Bitcoin and Ethereum.
- There are no deposit and withdrawal fees in this exchange.
- Gemini Custody will hold the crypto investments of the users.
- All transactions can be done through the Wealthsimple Trade mobile app.
Canada’s first regulated crypto exchange Wealthsimple Crypto has now allowed the commission-free trading of Bitcoin and Ethereum through its mobile trading app Wealthsimple Trade.
To ensure that users’ digital assets are kept safe and secure, the newly-launched crypto exchange partnered with Gemini to become its crypto custodian.
First regulated crypto exchange in Canada
Canadians can now use Wealthsimple Crypto to buy and sell Bitcoin (BTC) and Ethereum (ETH). After receiving its regulatory approval from the Canadian Securities Administrators (CSA) Regulatory Sandbox, the new product offering went live yesterday.
Remarkably, Wealthsimple Crypto is the first digital asset trading platform that has been authorized to operate in the country. Crypto users residing across the 13 provinces and territories in Canada will be able to sign up and start trading cryptocurrencies.
Launched in 2014, Wealthsimple is a fintech company that is focused on building powerful financial tools to help people grow and manage their money. The successful launch of its crypto-focused venture follows the company’s new verticals this 2020.
Trade cryptocurrencies without commissions
Set to expand into the cryptocurrency trading space, Wealthsimple now offers commission-free trading of BTC and Ethereum through its extensive mobile trading app. This is fairly ideal as other crypto exchanges charge deposit and withdrawal fees.
As the user creates a Wealthsimple Crypto account, they can start buying and selling crypto through Wealthsimple Trade. Apparently, deposits and withdrawals can only be made in Canadian dollars (CAD).
When asked why the company has gone all the way to be regulated, Wealthsimple’s general counsel Blair Wiley made a clear statement:
Cryptocurrency is a valuable asset, and we wanted to be able to help people buy, sell, and hold it in the most responsible way.
Wiley further explained that they had to meet a bunch of strict requirements to make this happen in the same way that a farmer has to meet certain requirements to get their products to be certified as “organic”.
Unlike other companies who “tried to do everything,” their only focus is allowing their clients to buy and sell crypto without any hassle and at a much cheaper rate. For the other elements of crypto trading, they have partnered with market makers and a reliable custody platform.
Gemini as Wealthsimple Crypto’s custodian
All cryptocurrencies traded on Wealthsimple Crypto will not be held by the company itself. Instead, they have chosen the Gemini Trust Company (Gemini Custody) to hold the crypto assets of users.
Product Manager for Wealthsimple Crypto Danish Ajmeri clarified in an interview how the crypto exchange will keep the cryptos protected against being stolen or hacked.
According to him, they made a simple, efficient, and safe way to buy and sell cryptocurrency. In this case,
Gemini, our custody partner, keeps your crypto until you want to sell it.
As for the reason for collaborating with Gemini, Wealthsimple said that it is one of the most trusted names in crypto. More importantly, it is regulated by the New York State Department of Financial Services, letting it acquire the highest US government security rating.
Canadian crypto users can be guaranteed that their investments are safe since Gemini has $200 million in cold storage as insurance. In case of emergency, crypto assets will be given to users unharmed.
Gemini has been actively reaching out to different parts of the world, including Hawaii and Europe, to broaden the scope of its crypto business. Moreover, it now supports DeFi tokens as its founders, the Winklevoss twins, believe that DeFi is indeed a “revolution”.