Bitvo Inc., based in Calgary, was purchased by FTX. Bitvo Inc. is one of the few cryptocurrency exchanges in Canada that has received regulatory permission from all provinces and securities regulators.
Following the current state of the crypto market, the FTX buy is massive. Cryptocurrency prices are continuing to fall toward multi-year lows. As a result of these circumstances, several crypto enterprises have had to decrease their workforce.
Celsius network, a popular cryptocurrency lender, has suspended operations. As a result, millions of its consumers feel ignored. Coinbase and Robinhood have just decreased their personnel numbers drastically.
More Information on FTX's Bitvo Purchase
The amount spent on Bitvo by FTX isn't known. However, awaiting approval from the appropriate authorities, the appraisal is expected to close by Q3 2022.
According to a joint declaration from both companies, users on every platform will not see any changes in the near future. However, they state that features from either platform will be implemented before the end of the year.
The statement also states that there will be no changes in staff strength as a result of the agreement. Pamela Draper, the CEO of Bitvo, commented on the acquisition. "This deal demonstrates FTX's long-term commitment to the crypto sector," she said. It demonstrates their desire to stay together.
Market Conditions in Cryptocurrency Are Worrying
Over the course of seven days on June 16, bitcoin lost 30% of its value. The most valuable digital asset is currently trading at just over $20,000. BTC has lost 70% of its value since peaking at around $69K in November. As is customary, all altcoins, including BTC, experienced a price drop.
The most valuable altcoin, ETH, fell 10% out of its previous day's price to trade at $1.1K. This is the cheapest it's been since 2020. Sam Bankman-Fried (SBF), the founder of FTX, said he isn't afraid of market downturns. "Markets will always do what they're going to do," he claims.
SBF stated in a recent interview that his company had some fruitful discussions with Alberta officials. He stated that the actions that will result from the discussions will allow Canada to take a key role in global crypto policy and frameworks.
Doug Schweitzer, Alberta's Minister of Labour, praised FTX's Bitvo acquisition, particularly given the current state of the crypto market.
Schweitzer stated in his throne speech earlier this year that the Alberta government might provide full support to crypto companies in the province. He went on to say that the govt would make the necessary efforts to make Alberta a global leader in crypto innovation and development.
"FTX's launch in Calgary will enhance our reputation," Schweitzer said of FTX's Bitvo acquisition. It would also establish us as a leader in the field.