Is CoinSmart backed by a Canadian bank?

CoinSmart is backed by DC bank and Luminus Financial, which are established banks in Canada.

The benefit of depositing money into a cryptocurrency exchange backed by a bank in Canada is that your money stays in the country. This is important to consider since cryptocurrency regulation is still up in the air. If you deposit your funds in an exchange that stores them overseas, then your money maybe subjected to regulatory changes that occur in that country. This is an additional risk of trading cryptocurrency; regulation.

By participating in an exchange that functions and stores money within one jurisdiction can be beneficial when it comes to new regulatory changes.