Cryptocurrency trading platform Bitvo, based in Canada, has stated that it has decided to terminate its deal to be bought by FTX.
Bitvo mentioned that its shareholder, Pateno Payments Inc., had to go through with the termination of the agreement that was formed earlier with FTX Canada Inc. and FTX Trading Ltd. (FTX).
FTX, the renowned crypto exchange, has filed for bankruptcy in the past week.
Bitvo has been known to be an independent crypto trading platform since its early days of operation.
This has been previously announced: Bitvo has no material exposure to FTX or any of the affiliated entities.
It is also known that Bitvo does not have any part in the bankruptcy proceeding that was entered into by FTX and its affiliated entities.
Bitvo has made it clear that it never owned, listed, or even traded FTX Token or any other coin similar to that.
FTX had earlier this year, in June, announced its agreement to buy Bitvo, which is one of the few Canadian cryptocurrency trading platforms.
Among the other crypto trading platforms, Bitvo is one such exchange that has met the standards of security exchanges. The agreement was caught in the regulatory process up until recently.
Bitvo Wants To Maintain Distance From FTX
Pamela Draper, the president, and CEO of Bitvo, has stated that.
I think it’s great to have clarity to the market and for people to be able to see that. Given the uncertainty that’s going on with the FTX Group of Companies, we’re happy to distance ourselves a bit from them.
Bitvo is also attempting to take some time to re-think and evaluate other ways that the platform can move forward. It is yet to be decided if the platform aims to go for a merger or partnership with another larger platform.
In the same light, the exchange continues to remain unaffected, as trading operations along with withdrawals and deposits will continue to occur in a smooth manner.
The exchange has always operated on a “full reserve” basis, which means that it does not support lending customer funds.
This is how the platform has always functioned as part of its regulatory status.
The status happens to be “restricted dealer,” which is registered with the Canadian Securities Administrators in all provinces and territories in Canada.
FTX Was Not Compliant With Canadian Regulation
FTX has previously mentioned that it would be interested in buying Bitvo with the intention to increase its footing and also be in sync with the regulatory compliance of the Canadian market.
Even though FTX wanted to do that, the platform was not fully compliant with the Canadian regulations on investment and liquidity of capital.
Binance, another crypto exchange that is a rival, also pulled out of a possible bailout of FTX last week after going through the financial accounts.
Binance sold off $580 million of FTT (FTX’s Token), which has led to a major selloff of the cryptocurrency.