BTCManager Logo with clear background. Orange and white font.

BITCOIN PRICE: 6,433.63     HIGH: 6,575.35     LOW: 6,381.25

=
BTCManager.com
advertisement
advertisement
#TRENDING STORIES
Next Event

Blockchain Economic Forum • June 16-19, 2018

We are hosting over 40 speaking sessions with more than 170 opinion leaders who will share their knowledge with more…

Click for more details
advertisement
BTCManager.com

Canada’s TMX Group Subsidiary Announces Launch of Cryptocurrency Brokerage in Collaboration with Paycase

by

Canada’s TMX Group Subsidiary Announces Launch of Cryptocurrency Brokerage in Collaboration with Paycase

Even though cryptocurrency exchanges may be experiencing a tough time dealing with regulatory bodies in Japan and South Korea, there seems to be little effect on those in the North American continent. Shorcan Digital Currency Network (SDCN), a subsidiary of the Canada-based financial institution, TMX Group, has agreed with Paycase Financial to provide cryptocurrency brokerage services for clients across North America.

Paybase is currently a value-based service provider that offers decentralized financial services. The joint venture was announced March 22, 2018, through a press release by TMX.

The TMX Group also owns and runs the Toronto Stock Exchange (TSX), which serves the equity markets. The revelation of its plans to enter the cryptocurrency brokerage industry likely comes in response to a similar announcement by the Canadian Securities Exchange (CSE). On February 13, 2018, the CSE announced the launch of a securities and clearing platform based on the Ethereum blockchain that would enable companies to raise capital by issuing security tokens.

Digital Currency Brokerage Platform Focuses on Bitcoin and Ether

The press release claims that such a joint venture will help cryptocurrency investors make more secure decisions. The to-be-launched digital currency brokerage platform will focus on bitcoin and ether. The payment setup and clearing mechanism will be provided by BMO Financial Group. The cryptocurrency brokerage service is expected to begin functioning by the latter half of this year.

Peter Conroy, President of Shorcan, said, “We are excited to enter into this agreement with Paycase, an industry leader with an innovative and entrepreneurial spirit”  and he was looking forward to collaborating with Paycase to make Shorcan DCN a success.

advertisement

Although none of the cryptocurrencies are legal tender in Canada, investors have been lured to invest in them with the belief that their market value may rise in the near future. Financial authorities in Canada tax any profits from cryptocurrency trading as they view them as a commodity, not foreign currency.

Paycase financial CEO, Joseph Weinberg, said, “We are thrilled about this partnership between Paycase Financial and the TMX. As the first ever public crypto brokerage desk by an exchange, this deal represents the true institutionalization of cryptocurrencies as an asset class.” The joint venture between Shorcan and Paybase will ultimately result in the creation of a proprietary cryptocurrency brokerage provider. Calling the collaboration a significant one, Weinberg said that the deal represented how beneficial it could be when a fully fledged large-scale financial institution joins hands with an innovative technology company.

More to Come from the Canadian Crypto Community?

Weinberg was also full of praise for Canada’s regulations that had not hindered innovation. The Paycase CEO stated that the partnership would build the “first major bridge between the crypto world and the traditional financial markets.”

“This is just a taste of more things to come from the collaborative and tight-knit Canadian community as we build out more products for the world.”

Not everyone in Canada shares the same optimism on the topic of cryptocurrency trading though. Stephen Poloz, governor of Bank of Canada, even went to the extent of comparing trading in the cryptocurrency market to gambling. He added that the central bank would soon come out with regulations for the cryptocurrency industry. Speaking with CNBC, he also said that these “so-called” cryptocurrencies were definitely crypto but not viable currencies.

Join our Telegram Channel!