Coinbase has recently been granted a registration license in Canada, allowing the company to expand its operations abroad amid a regulatory crackdown in the United States. The company has been registered in Ontario as a restricted dealer under the Canadian Securities Administrators, meeting the strict requirements for dealing with crypto assets in Canada. Last year, Canada introduced new guidelines for crypto exchanges, leading to Binance quitting its activity in the country. Coinbase filed its pre-registration undertaking with the Ontario Securities Commission in March 2023 and officially launched in Canada in August of that year, becoming the first international crypto exchange to receive restricted dealer registration in the country.
Lucas Matheson, Coinbase’s country director for Canada, stated that the regulatory environment in Canada has been more accommodating for crypto platforms compared to the U.S. Matheson highlighted Canada’s launch of the first spot bitcoin exchange-traded fund globally, the Purpose Bitcoin ETF, three years before the U.S. did. The market opportunity in Canada is significant, with a highly educated and technology-savvy population eager to access the digital economy. Canada is home to notable tech companies like Shopify and Cohere, and Coinbase has a tech hub with nearly 200 full-time local employees in the country.
As Coinbase looks to expand further globally, Matheson emphasized the company’s strong brand and commitment to compliance as key factors in building customer trust. Coinbase has focused on a global charm offensive to sway regulators and push its platform deeper overseas, launching its “Go Broad, Go Deep” strategy in 2022 to secure local licenses in various international markets. Last year, Coinbase selected Ireland as its primary regulatory base in the European Union and received individual approvals in countries like France, Spain, Singapore, Italy, and the Netherlands.
Coinbase CEO Brian Armstrong visited Canada in November 2023 to meet with the local team and engage in a fireside chat with Shopify CEO Tobi Lutke. The company’s registration in Canada positions it well to help millions of Canadians access the digital economy. Matheson highlighted Coinbase’s status as a publicly traded company committed to compliance, with a strong customer base that trusts the platform and its mission. Coinbase’s registration license in Canada marks a significant milestone for the company as it continues to expand its presence in international markets and navigate regulatory challenges in the crypto industry.
