(Kitco News) – Coinbase, the largest cryptocurrency exchange in the U.S., has announced it has been registered as a Restricted Dealer by the Canadian Securities Administrators (CSA), becoming the first international crypto exchange to be registered in Canada.
The approval was months in the making, as Coinbase signed an Enhanced Pre-Registration Undertaking that signified its dedication to regulatory compliance and operational excellence in March 2023 and officially launched Coinase Canada in August.
Throughout the application process, the exchange worked closely with Canadian regulators to establish a policy framework that serves as a global benchmark and also collaborated with Canadian banks, investment advisors, and pension funds to demonstrate its dedication to facilitating its successful navigation of the evolving digital asset realm.
“This is a significant milestone in Coinbase’s journey in Canada,” said Lucas Matheson, CEO of Coinbase Canada. “We’re excited to continue working with stakeholders across Canada to accelerate the adoption of digital assets, foster economic empowerment, and reshape the financial system.”
The addition of an exchange of Coinbase’s stature is likely to help boost adoption in Canada as a survey conducted by the exchange, in conjunction with Angus Reid, found that 72% of Canadians think that regulation of cryptocurrency exchanges is important. 29% of respondents also said they would be more inclined to buy cryptocurrency if there was more regulation in the industry.
“Among those who did purchase crypto, nearly half (49%) said they were driven by their curiosity in digital assets, while 39% said they wanted to diversify their investments, and just over half (53%) said they were interested in investing to make money,” Coinbase said.
Last year, Canada introduced new guidelines for crypto exchanges that established limits on how much certain investors can invest in crypto and introduced mandatory registrations for crypto firms.
After the guidelines were announced, Binance, the world’s largest crypto exchange by trading volume, closed up shop in the country, saying it was “no longer tenable” to operate there.
Coinbase is now the largest exchange in Canada, which the company views as a “Go Deep market.”
Their effort to establish a foothold in the country stems from what they see as a significant opportunity for growth as Canada ranked third in terms of being the most crypto-aware nation globally, according to a survey conducted by the exchange.
“Canada boasts an enthusiastic tech ecosystem that has the potential to be a leader in the global cryptoeconomy,” Coinbase said.
“We’ve been working diligently with our regulators over the past year on building a compliant platform in Canada to bring to Canadians,” Matheson said in an interview with CNBC. “We have a population here that’s highly educated, that’s technology-savvy, that understands the digital economy.”
“Our registration in Canada makes us the first international and largest cryptocurrency exchange that’s registered in Canada,” he added. “That positions us really well to help millions of Canadians access the digital economy.”
Coinbase has made a concerted effort to engage with global regulators in recent months as it looks to expand its international reach. Over the last year, Coinbase has obtained licenses and registrations in France, Spain, Singapore, Italy, Ireland, and the Netherlands.
“Regulation is critical to the success of the crypto industry and is essential for building trust,” said Faryar Shirzad, Chief Policy Officer at Coinbase. “We applaud the Canadian securities regulators’ demonstrated commitment to bring clarity to the industry and are excited for what this next chapter holds for Coinbase in Canada.”
