If it wasn’t obvious already, Kevin O’Leary is a crypto bull.
- Regulatory Hurdles For Kevin O’Leary-Led Wonderfi Acquistion Of Bitbuy
- WonderFi Bitbuy: A Complicated Deal
Regulatory Hurdles For Kevin O’Leary-Led Wonderfi Acquistion Of Bitbuy
In case you missed the NEO NewsFlash event yesterday, here’s a recap 👇@kevinolearytv alongside @BenSamaroo of @WonderFi and Michael Arbus of @bitbuy discuss Wonderfi’s milestone acquisition of Canada’s first licensed crypto marketplace and the future of blockchain technology. pic.twitter.com/D6zGOTF4b2
— Bitbuy (@bitbuy) March 26, 2022
Back in early January, WonderFi, a crypto investment company backed by Kevin O’Leary, announced that it was purchasing Canada’s largest crypto exchange Bitbuy. The deal appears to be finalized, but faced several regulatory hurdles. Canada like the U.S. has yet to clarify the laws around crypto.
According to the Globe and Mail, “Much of the delay stemmed from the fact that there is no precedent or established policy for regulators to turn to make their decisions about the sector.”
Furthermore, this was the first time that the countries 10 provinces and 3 territories had to consider an acquisition of a crypto exchange by a publicly traded company.
WonderFi Bitbuy: A Complicated Deal
Also complicating things was the composition of the deal itself.
WonderFi’s deal with BitBuy was announced as 200 million dollar CAD. However, it’s a combination of cash, shares, and vender financing. 20 million of it was upfront, another 30 million deferred through vendor financing, and with the rest coming from a share offering.
This isn’t the first time that the lack of regulatory clarity for crypto has caused issues for crypto exchanges. Binance was told by national Canadian regulators that they were welcome in the country, but the Ontario Securities Commission took issue with that as they are won’t to do.
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