Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Filecoin in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.
No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Bitbuy’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.
Bitbuy has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.
About Filecoin
FIL is the cryptocurrency of the Filecoin network, a decentralized peer-to-peer storage network that can be used to store, retrieve and host digital information. FIL tokens are the primary utility asset used to pay for storage, retrieval, and smart contract execution within the network. Network participation has evolved beyond traditional mining into the role of Storage Providers, who earn rewards by providing capacity and proving they are maintaining client data through cryptographic proofs. With the launch of the Filecoin Virtual Machine (FVM) and the 2026 Onchain Cloud mainnet, the network has transitioned into a programmable cloud platform. This allows for automated, on-chain payments via Filecoin Pay and incentivized data retrieval services through the Filecoin CDN, moving away from a reliance on manual off-chain micropayment channels for high-performance data access.
Risks
As with all assets, investing in Filecoin is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Filecoin below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Filecoin.
Filecoin Reliance on IPFS Protocol
Filecoin and the InterPlanetary File System (IPFS) are complimentary protocols that work simultaneously in the Filecoin network. While not all IPFS nodes are in the Filecoin network, all Filecoin nodes are in the IPFS network. This means that Filecoin uses the IPFS protocol as its foundational content-addressing system for identifying and locating data across the network. While IPFS provides the structure for data discovery, it does not inherently incentivize long-term storage, which is the economic utility that Filecoin provides. Any technical vulnerabilities or fundamental flaws in the InterPlanetary File System could negatively impact the performance of the Filecoin network, market sentiment, or the price of FIL. Investors should consider this foundational technical dependence when evaluating the risks associated with Filecoin.
To be made available for trading on Bitbuy’s platform, a digital asset must pass the following due diligence reviews:
Bitbuy undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Bitbuy’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.
References:
Filecoin Foundation. "About Filecoin." https://docs.filecoin.io/.
Filecoin Blog. "Updates –Latest Network News." https://filecoin.io/blog/updates/.
Last updated: March 24, 2026
