Coinbase, the largest cryptocurrency exchange in the U.S., has recently been registered as a Restricted Dealer by the Canadian Securities Administrators (CSA), making it the first international crypto exchange to be registered in Canada. The approval process took several months, during which Coinbase demonstrated its commitment to regulatory compliance and operational excellence by signing an Enhanced Pre-Registration Undertaking in March 2023 and officially launching Coinbase Canada in August.
Throughout the application process, Coinbase worked closely with Canadian regulators to establish a policy framework that serves as a global benchmark. They also collaborated with Canadian banks, investment advisors, and pension funds to showcase their dedication to navigating the evolving digital asset landscape successfully.
According to Lucas Matheson, CEO of Coinbase Canada, this registration is a significant milestone for the company in Canada. He stated, “We’re thrilled to continue working with stakeholders across Canada to accelerate the adoption of digital assets, promote economic empowerment, and reshape the financial system.”
This addition of Coinbase, a well-respected exchange, is expected to boost cryptocurrency adoption in Canada. A survey conducted by the exchange, in collaboration with Angus Reid, found that 72% of Canadians believe the regulation of cryptocurrency exchanges is crucial. Furthermore, 29% of respondents stated they would be more likely to purchase cryptocurrency if there were more regulations in the industry.
Coinbase also shared insights into the motivations behind Canadians’ crypto purchases. Nearly half of those who bought cryptocurrency (49%) did so out of curiosity, while 39% wanted to diversify their investments. Additionally, over half (53%) were interested in investing in order to make a profit.
Last year, Canada introduced new guidelines for crypto exchanges, including limits on investments for certain investors and mandatory registrations for crypto firms. As a result, Binance, the world’s largest crypto exchange by trading volume, ceased operations in the country, citing regulatory challenges.
With this new registration, Coinbase is now the largest exchange in Canada, which the company sees as a promising market. They have identified significant potential for growth in Canada, which ranked third in terms of being the most crypto-aware nation globally, according to a survey conducted by Coinbase.
“We see Canada as a ‘Go Deep market’,” the company stated. They believe that Canada’s enthusiastic tech ecosystem has the potential to become a leader in the global cryptoeconomy.
In an interview with CNBC, Matheson commented on their efforts to establish a foothold in Canada, saying, “We have been working closely with regulators over the past year to build a compliant platform in Canada for Canadians. We have a highly educated population, technologically savvy, and with a good understanding of the digital economy.”
He also highlighted the significance of being the first international and largest cryptocurrency exchange to be registered in Canada, stating, “That positions us well to help millions of Canadians access the digital economy.”
Coinbase has been actively engaging with global regulators in recent months as they strive to expand their international reach. In the past year, they have obtained licenses and registrations in France, Spain, Singapore, Italy, Ireland, and the Netherlands.
Faryar Shirzad, Chief Policy Officer at Coinbase, emphasized the importance of regulation in the success of the crypto industry. He stated, “We applaud the Canadian securities regulators for their commitment to bringing clarity to the industry and are excited for the next chapter of Coinbase in Canada.”
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