Thanks to the lengthy clearance procedure by local authorities, Bitvo was able to back out of its purchase agreement with FTX.
Bitvo, a cryptocurrency exchange based out of Canada, has reportedly broken off an acquisition deal with FTX and will now operate independently.
Pateno Payments, a Bitvo stakeholder, said on November 15 that it was terminating the purchase agreement with FTX Canada and FTX Trading.
Bitvo has no substantial exposure to FTX or any of its connected firms, the company said, emphasizing that its activities have not been harmed. The trading activities of Bitvou201, including withdrawals and deposits, are operational.
“Since its beginning, Bitvo has functioned as an independent, Canadian crypto asset trading platform,” the business noted, adding that the site has not offered loan or borrowing services:
Bitvo operates with a complete reserve, meaning that it does not lend client cash. Bitvo has always preferred to run its business in this manner, and doing so is mandatory due to Bitvo’s position as a Restricted Dealer with the Canadian Securities Administrators.
Cointelegraph earlier revealed that struggling cryptocurrency exchange FTX has agreed to buy Bitvo in June 2022 as part of the company’s strategy to expand into Canada. But the idea failed when FTX was implicated in a big industry controversy for misappropriating customer cash for trading on its sister business, Alameda Research.
Bitvo confirmed on November 14 that the purchase by FTX was still in progress but had not yet been completed.
Bitvo CEO Pamela Draper told Cointelegraph that the purchase would have been terrible for the company’s employees and, more importantly, its users. Since the June announcement, the purchase process has included efforts to meet the closing conditions, the most crucial of which was a regulatory clearance, she stated.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.