Coinbase Receives Restricted License in Canada Amid U.S. Regulatory Challenges
Coinbase achieved a significant milestone in its global expansion efforts by obtaining a registration license in Canada. Canadian Securities Administrators (CSA) has registered Coinbase as a restricted dealer, as the company recently informed CNBC.
This authorization allows Coinbase to operate legally in the country and deepens its international presence as it faces regulatory hurdles in its home market, the United States.
Key points:
- Coinbase has been working to obtain a registration license in Canada for nearly three years.
- The company is the first international crypto exchange to obtain restricted dealer registration in the country.
- Canada introduced new guidelines for crypto exchanges last year, including investment limits and mandatory registrations.
The journey to securing the registration license has been a lengthy process for Coinbase, spanning almost three years. Lucas Matheson, Coinbase’s country director for Canada, told CNBC that the company has been working diligently with regulators, particularly the Ontario Securities Commission, over the past 12 months to build a compliant platform for Canadian users.
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Coinbase’s Canadian win comes amidst US scrutiny
Coinbase’s achievement comes at a time when the crypto industry is facing increased scrutiny and regulatory challenges in the United States.
The U.S. Securities and Exchange Commission has embroiled the company and other crypto firms in a major lawsuit over alleged securities law violations. Also in contrast, Matheson noted that the regulatory environment in Canada has been more accommodating for crypto platforms.
Matheson expressed optimism about the market opportunity in Canada, describing the population as highly educated, technology-savvy, and well-versed in the digital economy.
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Coinbase’s presence in Canada extends beyond its registration license. In addition, the company has a tech hub located in the country, employing nearly 200 full-time local employees.
In November 2023, Coinbase CEO Brian Armstrong visited Canada to meet with the local team and participated in a fireside chat with Shopify CEO Tobi Lutke, highlighting the potential for collaboration and growth in the Canadian market.
