Coinbase acquires restricted reseller license in Canada | Wilnesh News

Coin Library The company told CNBC that it has obtained a registration license in Canada, which will allow it to further enter overseas markets at a time when it faces regulatory crackdowns in the domestic market in the United States.

The company said it is registered in Ontario as a restricted dealer under the Canadian Securities Administrators (CSA), the umbrella organization for Canada’s provincial and territorial securities regulators.

The cryptocurrency exchange said the authorization means the company now complies with Canadian regulators’ strict requirements for crypto asset trading and can operate legally in the country.

Last year, Canada introduced new guidelines for cryptocurrency exchanges, limiting the amount certain investors can invest in cryptocurrencies and imposing mandatory registration for cryptocurrency companies.

These policy changes led Binance, the world’s largest cryptocurrency exchange by trading volume, to withdraw its activities in Canada, saying it was “no longer able” to operate in the country.

Rival cryptocurrency exchange Kraken said last year it had submitted a pre-registration undertaking (PRU) to the Ontario Securities Commission, effectively starting the process of becoming a registered dealer in Canada.

Coinbase submitted the PRU in March 2023, followed by its official launch in the country in August of that year. The company said it is the first international cryptocurrency exchange to accept restricted dealer registration in Canada.

“This is something we have been working on for almost three years in Canada, and more specifically over the past 12 months with the Ontario Securities Commission,” Coinbase Canada country director Lucas Matheson told CNBC. ”

“We have been working diligently with regulators over the past year to build a compliance platform in Canada that can serve Canadians.”

Matheson said Canada’s regulatory environment is more relaxed for crypto platforms compared to the U.S.

Coinbase and the broader crypto industry are facing backlash from the U.S. Securities and Exchange Commission in a major lawsuit alleging violations of securities laws.

Matheson noted that Canada launched the world’s first spot Bitcoin exchange-traded fund long before the United States — the Purpose Bitcoin ETF has now been trading for the past three years.

Matheson said the market opportunity in Canada is huge.

“We have a population here that is highly educated, tech-savvy and understands the digital economy,” Matheson told CNBC.

“Our registration in Canada makes us the first international and largest cryptocurrency exchange to be registered in Canada. This puts us well-positioned to help millions of Canadians enter the digital economy.”

Canada is home to some notable tech companies, including e-commerce giant Shopify and artificial intelligence startup Cohere. Coinbase CEO Brian Armstrong visited the country in November 2023, met with local teams and held a fireside chat with Shopify CEO Tobi Lutke.

Coinbase has a technology center in Canada with nearly 200 full-time local employees.

As the company seeks further global expansion, Matheson said he is banking on Coinbase’s strengths as an exchange that has received regulatory approval ahead of its launch.

“As a public company, as a company that is committed to compliance and registered more broadly around the world, we have a strong brand in Canada,” he said. “I think Coinbase has built a strong customer base that trusts our platform. customers, and Coinbase’s mission.

The license marks the latest victory for Coinbase, which has embarked on a global charm offensive to influence regulators and push its platform overseas.

In 2022, Coinbase unveiled what it called a “go broad, go deep” strategy aimed at hiring new leaders and filling local licenses in various international markets.

Last year, Coinbase chose Ireland as its main regulatory base in the EU as it seeks to take advantage of the bloc’s new crypto rules. The company also received separate approvals from France, Spain, Singapore, Italy, Ireland and the Netherlands.

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