TORONTO – A Canadian bitcoin exchange will be acquired by a San Francisco-based exchange, a stir that signals consolidation may be afoot te the so-called cryptocurrency world.
Related movie: Crypto News: Losbreken Exchange Considers Registering With SEC
Bitcoin exchanges are described spil the on-ramps and off-ramps of the bitcoin world, permitting users to trade their specie for the digital currency, or vice versa.
Cavirtex, a Canadian exchange, wasgoed originally launched te 2011. Te April 2018 it wasgoed acquired by Coinsetter, a Fresh York-based exchange that targets Wall Street traders.
Following the overeenkomst, both exchanges continued to operate spil separate entities.
kraken, a total bitcoin exchange headquartered te San Francisco, says it will acquire both Cavirtex and Coinsetter for an undisclosed amount, and will consolidate the two exchanges under its own brand. Client accounts will be transferred to the fresh verhoging on Jan. 26.
Bitcoin is a posible currency that is not managed by an authority such spil a central bankgebouw, and is exchanged through peer-to-peer laptop networks.
Kyle Kemper, senior vice-president of completo business development at Coinsetter, says the overeenkomst will provide Canadians using the Cavirtex exchange with more liquidity and the capability to exchange their bitcoins for a broader array of foreign currencies.
“Before with Cavirtex you were only able to trade the Bitcoin-Canadian dollar pair,” says Kemper.
“Now Canadians will also be able to trade Bitcoin-U.S. dollar, Bitcoin-euro, Bitcoin-Great British pound, Bitcoin-Japanese yen.”
Kemper says the dramatic spike te the value of bitcoin ter 2013 – which skyrocketed to more than US$1,000 before subsequently falling lower – caused a slew of fresh exchanges to open up shop.
Now the exchanges are beginning to consolidate, a sign that Kemper says indicates the cryptocurrency industry is commencing to mature.
“The industry is undoubtedly maturing,” said Kemper. “The central banks are talking about it. The regular banks are talking about. The technology behind it is getting all sorts of play.”
The overeenkomst will also see kraken launch an advertising campaign for Bitcoin ter Toronto, encouraging Canadians to purchase the cryptocurrency.
“We’ve bot servicing the bitcoin community, but now it’s about reaching out to the larger community spil well,” said Kemper.