Canadian bitcoin exchange CoinSmart raises $3.5M to expand into Europe
Toronto-based cryptocurrency exchange company Simply Digital Technologies Inc. (CoinSmart), today announced that it recently closed a CAD $4.5 million (USD $3.55 million) seed round of financing through the issuance of interest-bearing convertible debentures to fuel the expansion of its platform into Europe and support operational updates.
Following the pre-RTO financing announcement made earlier this month, this funding round will continue to lay the groundwork for Simply Digital Technologies Inc. proposed reverse takeover (RTO) in the coming months. This RTO will be an arm’s length “Qualifying Transaction” in order to successfully obtain a listing on the TSX Venture Exchange.
As one of the first Canadian exchanges to be regulatory compliant with the country’s financial intelligence unit – Financial Transactions and Report Analysis Centre of Canada – CoinSmart prioritizes the safety and security of its customers with adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and the use of cryptocurrency cold storage to reduce theft.
CoinSmart’s European expansion is possible because of a Financial Intelligence Unit (FIU) license issued by the Estonian Police and Border Guard Board, holding CoinSmart to stringent consumer protection standards and security protocols.
In 2020, CoinSmart saw a 356% growth in users, a 454% increase in volume, and deposits on the exchange grew by 632%. The $4.5 million will fuel the next stage of CoinSmart’s growth and help power its team as they continue to develop and expand their product offerings for Europe.
“CoinSmart’s fundamental mission is to make cryptocurrency accessible for people of all experience levels. Our expansion into the European market marks a unique opportunity for CoinSmart to present its innovative cryptocurrency trading services globally, while offering the same level of customer service and trust we’ve established in Canada. We’re excited about the ways in which crypto can help streamline payments within Europe’s financial system and subsequently better serve and protect our customers.”
– Justin Hartzman, CEO of CoinSmart