Coinsquare suffers data breach, announces temporary shutdown

A data breach occurred on the trading platform Coinsquare just a few short weeks after the Investment Industry Regulatory Organization of Canada (IIRO) granted the company approval to become the first cryptocurrency exchange in Canada. This breach allowed unauthorized access to the persona


As a result, the Canadian company that deals in digital assets declared that it had momentarily halted operations to make room for an examination into the peculiar behaviors that had been observed. Despite this, a number of proactive actions have made it possible for the organization to gradually resume operations.

Investors were informed through email that the company's customer database, which contained their personal information, had been compromised as a result of the assault. As a consequence of this, Coinsquare acknowledged the possibility that the information had been obtained by a third party.

The database that was hacked contains personal information about users, such as their names, residence addresses, email addresses, dates of birth, account numbers, and balances, among other things.

The following is an excerpt from a statement issued by the company: "Coinsquare always highlights that customers' assets have been secure in the company's cold storage and will continue to be secure there. Customers' assets are not exposed to any hazards."

Coinsquare could not discover any activity from attackers utilizing the leaked data; nonetheless, the official statement from the exchange advises customers to be aware of the problem, change their passwords, and make use of two-factor authentication (2FA).

Taking the Spotlight as IIROC's Very First Registered Member

After having its membership application accepted by the regulatory organization, Coinsquare became the first cryptocurrency exchange to be officially registered with IIROC last month. Because of this clearance, the exchange is now legally required to segregate and store the money belonging to its customers with fund managers who are both licensed and insured.

In addition to this, in order to keep its recognized position as a service provider, Coinsquare is required to routinely disclose its current financial state and keep its liquidity. Additionally, in the event that the company goes bankrupt, the Canadian Investment Protection Fund will protect any cash that is stored in the accounts of its clients.

The cryptocurrency exchange serves more than 500,000 customers and provides access to more than 40 different crypto asset types. Since it began operating in 2014, Coinshare has been responsible for facilitating transactions worth around $5.82 billion up to this point.

The United States and Canada take two quite different approaches to the regulation of cryptocurrencies. For example, all digital asset service providers in Canada are required to apply to and get registration with the IIROC in order to continue doing business in the nation.

However, Canadian authorities are stringent with rule enforcement, much as their counterparts in other countries, particularly in light of the collapse of the Terra LUNA ecosystem. After allegations that the exchange did not answer to the agency's information demands, Ontario authorities in June 2022 issued a ban prohibiting KuCoin from operating inside their jurisdiction.

Due to the fact that every province in Canada has its own regulatory standards and criteria, Canada has faced a number of difficulties in maintaining compliance with cryptocurrency exchanges.

Ojike Stella

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