FTX TO MOVE INTO CANADIAN MARKET MAY ACQUIRE BITVO
Cryptocurrency derivatives exchange FTX has entered into an agreement to purchase the Canadian crypto platform Bitvo.
In a statement on Friday, FTX Trading Limited said it plans to acquire Bitvo as part of a crypto exchange effort to provide its products and services to Canadian users. The company added that the agreement "is subject to legal approval and general closure conditions," but is expected to close in the third quarter of 2022.
"We are excited to enter the Canadian market and continue to expand FTX global reach," said FTX chief executive Sam Bankman-Fried, or SBF. "Our expansion in Canada is another step forward to work closely with cryptocurrency regulators in different parts of the world."
News of the acquisition came as the prices of cryptocurrencies dropped sharply in June, when Bitcoin (BTC) tested the $ 20,000 level. Several crypto firms including Coinbase, Gemini, and Crypto.com announced a reduction in staff, but the SBF said on June 6 that FTX would not reduce its staff or suspend employment.
In addition to Bitvo, FTX acquired the Japanese crypto company Liquid Group and its subsidiaries in February as part of the company's growth in the Asian market, following a strong BTC acquisition of the LedgerX platform in 2021. Cointelegraph reported in May that the crypto company was looking to secure brokerage initiatives as part of a possible step in providing stock options.