Coinbase granted key registration license in Canada, expands global footprint

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In a move to expand its global footprint, Coinbase has secured a registration license in Canada, allowing it to deepen its operations abroad as it faces heightened regulatory challenges in its U.S. home market.

The company announced that it has been registered in Ontario as a restricted dealer under the Canadian Securities Administrators (CSA), meeting the rigorous requirements set by Canadian regulators for dealing in crypto assets. This milestone enables Coinbase to operate legally in Canada, making it the first international crypto exchange to receive such recognition in the country.

Canada’s regulatory environment for crypto platforms has proven more accommodating compared to the U.S., where Coinbase and the broader crypto industry have encountered significant backlash from the Securities and Exchange Commission (SEC) over alleged securities laws violations.

Last year, Canada introduced new guidelines for crypto exchanges, including limits on investments by certain investors and mandatory registrations for crypto firms. These changes prompted Binance, the world’s largest crypto exchange by trading volume, to cease operations in Canada, citing an untenable operating environment.

Rival exchange Kraken also took steps to comply with Canadian regulations, filing a pre-registration undertaking (PRU) with the Ontario Securities Commission to become a registered dealer in the country.

Coinbase filed its PRU in March 2023 and officially launched in Canada in August of that year, after nearly three years of preparation. Lucas Matheson, Coinbase’s country director for Canada, highlighted the company’s commitment to compliance and registration, positioning Coinbase well to serve the Canadian market.

Canada’s tech-savvy and digitally literate population presents a significant market opportunity for Coinbase. Matheson emphasized the importance of trust in Coinbase’s platform, noting the company’s strong brand as a publicly traded entity and its mission-driven approach to cryptocurrency.

Coinbase’s CEO Brian Armstrong visited Canada in November 2023 to engage with the local team and participate in discussions with industry leaders. Coinbase’s tech hub in Canada, which employs nearly 200 full-time staff, underscores the company’s commitment to the region.

As Coinbase continues its global expansion efforts, Matheson highlighted the advantage of Coinbase’s proactive approach to regulatory approvals, positioning the company as a trusted partner for regulators worldwide.

The registration in Canada marks another milestone for Coinbase’s global expansion strategy, following its selection of Ireland as its primary regulatory base in the European Union. With individual approvals in several countries, Coinbase’s “Go Broad, Go Deep” strategy is advancing, aiming to establish a strong presence in key international markets.

(Source: CoinGape | NBC 6)

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