Coinbase becomes largest crypto dealer in Canada
America’ largest crypto exchange, Coinbase, has been granted the status of a “restricted dealer” in Canada, marking it the largest operator in the country.
The exchange said the Canadian market has become a priority target for its international growth strategy. This strategic move, known as the “Go Deep” approach, capitalizes on existing customer relationships to drive further engagement.
This milestone enables Coinbase to operate under the regulatory framework established by the Canadian Securities Administrators following the introduction of new cryptocurrency regulations last year. With this designation, Coinbase becomes the largest registered cryptocurrency exchange in Canada, as confirmed by the Ontario Securities Commission (OSC).
Coinbase also outlined its intention to apply for investment dealer registration and to seek membership with the Canadian Investment Regulatory Organization (CIRO, previously known as IIROC). Additionally, Coinbase plans to register as an alternative trading system (ATS).
Lucas Matheson, the CEO of Coinbase Canada, stated that this marks a crucial milestone for Coinbase in the country. He added that the company plans to continue collaborating with Canadian partners “to accelerate the adoption of digital assets, foster economic empowerment, and reshape the financial system.”
Citing a study it participated in, Coinbase revealed that nearly a third of Canadians plan to buy cryptocurrencies if more regulatory measures were in place. Previously, Coinbase expanded its operations by recruiting 200 individuals to develop a customized platform for Canada, its largest market outside the U.S.
As part of its launch, Coinbase unveiled a key collaboration with Peoples Trust Company, a subsidiary of the reputable Vancouver-based financial services firm Peoples Group, which introduces Interac payment rails.
Drawing attention to user preferences, Coinbase noted that Interac e-Transfers stood as the most sought-after feature among Canadian users. This feature enables free and nearly instantaneous deposits to the Coinbase platform, with more than half of recent deposits being made using this method.
Coinbase’s strategy to establish a compliant operational base in Canada is contrasting with its ongoing regulatory challenges in the United States, where the Securities and Exchange Commission (SEC) accuses it of illegal operation and offering unregistered securities.
