Coinbase Commends Canada's Crypto Approach Amid Mounting US Regulatory Pressure

Tanya Sharma
Tanya Sharma
Published on May 19, 2023 07:45 PM

Crypto Exchange Giant Appreciates Regulatory Engagement and Clarity in Canada as Binance Exits the Market

Coinbase Commends Canada's Crypto regulation
Source: Unsplash

Coinbase, the renowned cryptocurrency exchange, has expressed its admiration for Canada's proactive approach to crypto regulation, emphasizing the benefits of regulatory engagement. 

In contrast, the United States struggles with ambiguity and enforcement-focused regulations, leading many companies and investors to consider relocating. 

As Coinbase faces impending enforcement action from the US Securities and Exchange Commission (SEC), the exchange looks to Canada's regulatory clarity as a favourable environment for its operations.

Coinbase Favors Canada's Regulatory Engagement

Nana Murugesan, Coinbase's VP of International and Business Development, lauded Canada's crypto regulation strategy, citing the regulators' willingness to engage with industry players. 

Murugesan highlighted the challenges associated with regulation by enforcement, emphasizing the difficulty of navigating unclear rules.

Whereas, Canada's regulatory engagement approach aligns well with Coinbase's principles and preferences.

Impact of Canada's Pre-Registration Undertaking

Canada has also exerted pressure on the crypto industry through its Pre-Registration Undertaking (PRU) regime, leading to the departure of several major players, including Binance, the largest exchange group by volume.

However, despite the rigorous PRU framework,

"Coinbase's Murugesan commended Canada's regulatory landscape, emphasizing the advantages of engagement over enforcement."

Coinbase's Commitment to Canada  

Coinbase has maintained a strong presence in Canada, with the company signing Canada's enhanced PRU in March. The Ontario Securities Commission (OSC) serves as Coinbase's principal regulator in the country. 

With over 200 engineers based in Canada, the exchange has made significant investments in the region. 

Coinbase aims to enhance the fiat-to-crypto experience for Canadian customers by introducing new payment rails, including the integration of Interac payment networks.

With regulatory clarity and the exit of Binance from the Canadian market, Canada presents an attractive opportunity for Coinbase's continued growth.

While refraining from commenting on competitors, 

Murugesan acknowledged that Canada's recent developments align well with Coinbase's strategic objectives.

Wrapping Up

As Coinbase faces regulatory challenges in the United States, the exchange finds solace in Canada's crypto-friendly approach. 

By prioritizing engagement over enforcement, Canadian regulators have fostered a conducive environment for Coinbase's operations

With plans to enhance the customer experience and capitalize on regulatory clarity, Coinbase remains committed to its expansion in Canada, benefiting both the exchange and the Canadian crypto market as a whole.

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