Coinbase Gets Approval to Operate in Canada Amid SEC Crackdown

Coinbase, one of the largest cryptocurrency exchanges in the world, has secured approval to extend its operations in Canada amid the Securities and Exchange Commission crackdown in the United States. The move demonstrates Coinbase’s goal to expand globally while seeking regulatory clearance.

Coinbase secures Canadian restricted dealer license

In a recent development, the Canadian Securities Administrators (CSA) has granted a restricted dealer license to popular crypto exchange Coinbase, enabling the company to operate under the guidance of Canada’s crypto asset regulations. This monumental achievement comes in light of the regulatory pressure faced by Coinbase and other similar entities in the US.

Canada had previously introduced strict crypto exchange regulations which led to the exit of Binance from its market. The country placed limits for particular investors while making registrations from crypto firms mandatory. However, Coinbase achievements highlight its commitment to complying with regulations and adapting to the ever-evolving regulatory landscape.

According to data provided by the Canadian watchdog CSA, Coinbase is registered as two distinct entities in the country. One of them, Coinbase Incorporated, is registered as a restricted dealer, and the other, Coinbase Canada is positioned as an international dealer.

Per the data, the status of restricted dealer offers Coinbase “a special kind of dealing registration” that is granted to companies that do not fit under any category. Requirements are individually established for firms with this license.

On the other hand, firms with international dealer licenses are prohibited from trading with Canadian clients in equity or debt securities of Canadian issuers other than the government according to JD Supra, a legal intelligence source.

Coinbase’s journey towards securing license

The journey toward grabbing the operational license in Canada has been notable, spanning over three years. Coinbase’s country director for Canada, Lucas Matheson, pointed out that the company has been working hand-in-hand with the Ontario Securities Commission to achieve this feat.

Matheson made a comparison between the regulatory landscapes in Canada and the United States, where Coinbase has been subject to legal challenges from the Securities and Exchange Commission. He acknowledged Canada’s dynamic stance towards the crypto industry.

With the latest license secured, Coinbase now positions itself as one of the crypto exchanges that remains fully committed to facilitating access to the digital economy, bringing the gospel of cryptocurrencies to the world. Ultimately, by securing a Canadian license, Coinbase now becomes the first foreign cryptocurrency exchange company to achieve this feat.