MOGO'S PORTFOLIO COMPANY, COINSQUARE, ANNOUNCES NEW STATUS AS CANADA'S FIRST IIROC-REGULATED CRYPTOCURRENCY DEALER AND MARKETPLACE MEMBER
Mogo Inc. investment Coinsquare, Canada's longest operating crypto asset trading platform and a company in which Mogo is an approximate 34-per-cent shareholder, received approval from the Investment Industry Regulatory Organization of Canada (IIROC) for its investment dealer registration and IIROC membership through its wholly owned subsidiary, Coinsquare Capital Markets Ltd. This regulatory status will now position Coinsquare as the first crypto-only, IIROC-registered investment dealer and marketplace member across all provinces and territories of Canada.
With Coinsquare being IIROC-regulated, clients will now have the added comfort and security of knowing that Coinsquare is subject to the highest level of dealer compliance and oversight under the existing regulatory system. Additional information on this development can be found in Coinsquare's press release.
"We commend the Coinsquare team for achieving this important and value-driving milestone. We believe this registration helps them further differentiate from the competition and, when combined with the recently announced acquisition of Coinsmart, should position Coinsquare well for future growth and long-term success," said Greg Feller, Mogo's president and chief financial officer.
Mogo also announced that it will be winding down its current bitcoin product. Consistent with the road map and plans for Mogotrade, the company expects to reintroduce and expand a crypto trading option within the Mogotrade app. Mogocrypto revenue is immaterial to the company's financial results and Mogo's primary exposure to crypto continues to be its 34-per-cent ownership stake in Coinsquare.
"Mogo was a pioneer in crypto in Canada, creating a simple way for Canadians to own bitcoin. We are proud of our history in this space and remain committed to providing our members with options to access this asset class," said David Feller, chief executive officer of Mogo. "While the current and evolving regulatory environment means it's no longer feasible for us to offer the Mogocrypto product in its current form, we will continue to work with our regulators to incorporate a crypto trading offering within Mogotrade in the future. Once live, we expect this new solution will give Mogo users significantly more investment options and functionality."
Mogocrypto users will be provided with more information regarding the options available to them as the company implements these changes.
Mogo, one of Canada's leading financial technology companies, is empowering its more than two million members with simple digital solutions to help them get in control of their financial health while also making a positive impact with their money. Through the free Mogo app, consumers can access a digital spending account with the Mogo Visa Platinum Prepaid Card, which features automatic carbon offsetting, free monthly credit score monitoring and ID (identification) fraud protection, and access to personal loans and mortgages. Mogo's new Mogotrade app offers commission-free stock trading that helps users make a positive impact with every investment and, together with Moka, Mogo's wholly owned subsidiary bringing automated, fully-managed flat-fee investing to Canadians, forms the heart of Mogo's digital wealth platform. Mogo's wholly owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC (Asia Pacific).
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