Finance News

TMX Group of Canada Launches Cryptocurrency Brokerage Platform

A new cryptocurrency brokerage platform is being launched by TMX Group, the operator of the Toronto Stock Exchange, according to bitcoin.com.

The platform will be called the Shorcan Digital Currency Network, or Shorcan DCN for short. It will be launched in partnership with Paycase Financial Corp, a Toronto-based fintech startup that operates a remittance platform for mobile phones. Banking services will be provided by Bank of Montréal.

Bitcoin and Ethereum will be available on the platform at first, and additional cryptocurrencies will be added if there is demand.

The press release says: “Shorcan DCN is designed to leverage the combination of Shorcan Brokers’ (Shorcan) expertise in providing clients in the Canadian financial industry with liquid, efficient and reliable brokerage services with Paycase’s premier cryptocurrency data aggregation platform and established worldwide network of industry leaders and participants.”

Peter Conroy, President of Shorcan, said that the initial goal is to cover up to 5 percent of the global over-the-counter market, worth between 4-9 billion USD. He said: “We are excited to enter into this agreement with Paycase, an industry leader with an innovative and entrepreneurial spirit.”

Joseph Weinberg, CEO of Paycase, said: “As the first ever public crypto brokerage desk by an exchange, this deal represents the true institutionalization of cryptocurrencies as an asset class.”

Cryptocurrency in Canada

Cryptocurrencies are not classified as legal tender in Canada. Stephen Poloz, head of the Central Bank of Canada, said to CNBC in January: “I object to the term cryptocurrencies because they are crypto but they aren’t currencies…”

However, the country is looking to regulate the industry, and the Canadian Securities Administrators stated in a notice in August 2017 that cryptocurrencies could be considered securities. In fact, Canada passed the world’s first ever law regarding cryptocurrency back in 2014, according to Bitcoin Magazine.

Meanwhile, Canada has proven to be an attractive location for Chinese Bitcoin mining companies in their search for a new home, as the climate is conducive to the effective operation of the mining computers.

Recently, the Canadian Securities Exchange announced a plan to introduce a blockchain-based securities platform which will allow companies to issue traditional instruments using a digital token.

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