Coinbase License In Canada Is Now Approved Amid Regulatory Compliance Push

Key Points:

• Coinbase obtains restricted dealer status in Ontario, Canada, meeting stringent regulatory criteria.
• Canada’s tightened cryptocurrency exchange rules lead to major players like Binance exiting the market.
• Coinbase license in Canada shows that the global expansion of the exchange is increasingly consolidated.

Coinbase, the renowned cryptocurrency exchange platform, has achieved a significant milestone by registering as a restricted dealer in Ontario, Canada, as reported by CNBC.

Coinbase License in Canada Approved

This Coinbase license in Canada, granted by the Canadian Securities Administrators (CSA), signifies that the exchange now complies with the stringent regulations imposed by Canadian authorities regarding crypto asset trading, thereby enabling it to operate within the country’s legal framework.

According to data from CSA’s national registration database, two entities affiliated with Coinbase are now registered in Canada. One is Coinbase Incorporated, registered as a restricted dealer, while the other, Coinbase Canada, holds registration as an international dealer.

The move comes amidst Canada’s adoption of new guidelines for cryptocurrency exchanges last year. These guidelines include restrictions on the amount certain investors can invest in cryptocurrencies and the mandatory registration of cryptocurrency companies.

Notably, this policy shift prompted Binance, a major player in the cryptocurrency exchange realm, to cease its operations in Canada, citing untenable circumstances. Similarly, Kraken, another prominent exchange, initiated the process of becoming a registered dealer in Canada by filing a pre-registration undertaking with the Ontario Securities Commission.

Cryptocurrency Landscape Shifts as Coinbase Expands Globally

Securing approval of Coinbase license in Canada wasn’t a simple feat, admitted the exchange in an interview with CNBC. Canada is known for having some of the strictest regulations governing crypto asset dealings globally.

Expanding internationally has been a strategic priority for Coinbase, especially amidst regulatory pressures in its home market of the United States. Last year, Coinbase designated Ireland as its base of operations within the European Union, and it has since extended its presence to several other countries, including France, Spain, Singapore, Italy, Ireland, and the Netherlands.

Coinbase filed its pre-registration undertaking in March 2023, officially launching its operations in Canada in August of the same year. Notably, Coinbase claims to be the first international crypto exchange to attain restricted dealer registration in Canada.