Digital Payments News

Payments Giant Joins Crypto Compliance Initiative Amid Bankruptcies

Payments Giant Joins Crypto Compliance Initiative Amid Bankruptcies

As the crypto winter shows signs of slowing, companies are rushing to become compliant after a string of bankruptcies within the space. Regulatory compliance is critical to improving crypto’s reputation among investors. It is also essential for mitigating liquidity risks, an issue that caused crypto giants Voyager Digital and Celsius to file for bankruptcy. Last week, Payments giant PayPal Holdings, Inc.

Latest Fintech News: Bank of America Announces Small Business Down Payment Grant Program to Drive Women and Minority Business Growth

(NASDAQ:PYPL) joined Coinbase Global‘s (NASDAQ:COIN) Travel Rule Universal Solution Technology (TRUST) network. The TRUST network, which was launched in February by 18 virtual asset providers, was created to “protect the security and privacy” of customers, while complying with the bank industry’s Travel Rule. In the past, companies like Block Inc. (NYSE:SQ) (formerly Square Inc.) have rejected proposed FinCEN regulations, while companies like WonderFi Technologies Inc (TSX:WNDR) (OTCQB:WONDF) and CME Group (NASDAQ:CME) are focused on exceeding regulatory requirements.

WonderFi Technologies Inc (TSX:WNDR) (OTCQB:WONDF) is a technology company providing greater access to digital assets through centralized and decentralized platforms.

WonderFi has continued to make strategic acquisitions that have positioned the company as one of the largest combined digital currency companies in Canada. On July 4, the company closed the acquisition of Coinberry, one of Canada’s leading crypto trading platforms with over $1 billion traded to date.

The acquisition of Coinberry makes WonderFi Technologies the first company in Canada, and one of the first globally, to own and operate more than one licensed,crypto asset trading platforms that is regulated by applicable securities commissions.

Coinberry brings with it over 225,000 users and $99.5 million of client assets under custody, giving WonderFi over half a billion dollars in approximate total client assets under custody as of the acquisition.

Latest Fintech News: Moove Signs MoU with MUFG and Suzuki to Promote Financial Inclusion for Mobility Gig Workers Globally

“This acquisition further solidifies WonderFi as a leader amongst crypto companies in Canada, and along with our acquisition of Bitbuy, establishes a great foundation for our expansion into global markets” said WonderFi CEO Ben Samaroo. “Further, as we’ve seen over the past few weeks, the crypto market downturn has had a massive impact on the viability of unregulated crypto trading platforms and WonderFi’s value proposition as one of the few regulated crypto businesses makes us well positioned to continue our growth.”

Earlier this month, WonderFi reported its Q3 2022 financial results, reporting revenues of $2.9 million, compared to $nil in the prior-year quarter. The increased revenue is due to the acquisition of Bitbuy, which was completed in July 2022. WonderFi also reported $356 million in total assets as of June 30, 2022, including $15 million in cash, $5.6 million in crypto assets and inventory and $187 million of Assets Under Custody for customers.

Latest Fintech News: PalmPay Hits 10 Million User Milestone in Nigeria

[To share your insights with us, please write to sghosh@martechseries.com]

Related posts

TaxJar Achieves SOC 2 Compliance, Demonstrating Their Commitment to Customers and Partners in Data and Information Security

Fintech News Desk

Crypto Crash: Bitcoin Bashers and Crypto Cynics Are Wrong – Here’s Why

Fintech News Desk

VoPay and Parvis Invest Bring Payment Solutions to Canadian Investors in $7.82T Real Estate Market

Business Wire
1