Coinsetter Acquires Canadian Bitcoin Exchange Cavirtex
Coinsetter, a New York-based bitcoin exchange, announced its latest acquisition: Cavirtex. Jaron Lukasiewicz, chief executive officer of Coinsetter, failed to provide the value of the all-stock deal, but sources say it was worth around $2 million.
Under the new agreement, the establishments will continue to operate under separate names. Technology, capital and banking access will be shared by both parties.
Coinsetter also plans to retain the Canadian bitcoin exchange’s unnamed banking partner, despite reports of an unstable relationship and underlying banking solution concerns.
“We saw a lot of assets in Cavirtex not only in terms of entering the Canadian market, but being a leader in it. But probably the most important asset was the exchange’s compliance-approved domestic bank account in Canada,” said Lukasiewicz.
Prior to the acquisition, Cavritex was forced to cease operations in March after suffering a crippling security breach. The attack compromised sensitive company information, password hashes and two-factor authentication data.
Lukasiewicz clarified that necessary precautions have been taken to minimize future security risks:
“No customers have been financially affected by a compromise … We feel strongly about our ability to protect customer funds and will keep minimal funds in hot wallets.”
Cavirtex is set to commence trading in the near future, possibly within the week.
“I’m excited to place a core focus on Canadian customers and believe Cavirtex provides important infrastructure to be successful in this market. We are the only bitcoin exchange with an approved domestic bank account in Canada, and we will be integrating Coinsetter’s trading technology to provide an unmatchable bitcoin exchange for Canadians,” highlighted Lukasiewicz.
Many consider the acquisition as timely due to new Canadian laws that were recently passed on reporting criteria for cryptocurrency establishments. The critical regulations could help bitcoin businesses foster better banking relationships with local financial institutions.