Coinsquare

Yes. In September 2020, IIROC (Investment Industry Regulatory Organization of Canada, now CIRO) approved a settlement with Coinsquare for market manipulation through wash trading — artificially inflating trading volumes to attract customers. Coinsquare agreed to pay approximately CAD $2.2 million in fines and costs. The exchange subsequently underwent leadership changes and enhanced its compliance program. Coinsquare is now a CIRO dealer member subject to continuous monitoring and routine audits.

Customer cryptocurrency is held 1:1 in cold storage with external qualified custodians — BitGo Trust Company and Coinbase Custody. Assets are held separately from Coinsquare's operational funds and are never used for lending or rehypothecation. BitGo and Coinbase Custody collectively carry approximately USD $680 million in insurance coverage. Cash balances are additionally protected by the Canadian Investor Protection Fund (CIPF) up to CAD $1 million per account.

Yes. Coinsquare operates through Coinsquare Capital Markets Ltd., a registered dealer member of CIRO (Canadian Investment Regulatory Organization), which regulates and monitors its operations. Coinsquare is also registered with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) as a money services business, and is subject to anti-money laundering and know-your-customer obligations under Canadian law.

Yes. In November 2022, Coinsquare disclosed a data breach in which user login credentials may have been compromised. The company stated that no malicious activity had been detected at the time of disclosure. Users were advised to reset passwords and enable two-factor authentication. Coinsquare offers 2FA through its account settings and has since enhanced its security practices following the incident.

As of 2026, Coinsquare has not published a public Proof of Reserves attestation or Merkle-tree-based on-chain verification. However, as a CIRO dealer member, Coinsquare is subject to mandatory independent financial audits by CIRO-approved accounting firms. The company states customer assets are held 1:1 in cold storage with regulated custodians, but these are regulator-facing audits rather than publicly accessible PoR disclosures.