• Wed. Jun 19th, 2024

Coinbase Initiates Talks With Canadian Regulators as Crypto Firms Mull Exit Amid Regulatory Shakeup

Patrick Carter

ByPatrick Carter

Mar 30, 2023

The recent statement by Coinbase reveals plans by the Francisco-based crypto exchange to retain operations in Canada despite the significant regulatory shakeup. The talks by the American-based crypto exchange emerge from the stricter rules targeted toward operators of digital asset exchanges.

Mixed Response by Crypto Exchanges to Tightening Regulations in Canadian Market

Contrary to Coinbase efforts to reach out to the Canadian Securities Administrator (CSA), arch-rival Deribit is considering exiting the Northern American alleging regulatory burden. An individual privy to the ongoing deliberations indicated that Coinbase considers Canada a critical market.

Securing the requisite license would enable it to conduct business in Canada amidst the push for crypto companies to comply with the tiger regulations. It is unsurprising for Coinbase to pursue compliance considering that the Canada Securities Administrator set March 24 as the deadline for crypto trading firms to comply with the pre-registration undertaking.

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Coinbase Actively Pursuing Canadian Market

The statement conveyed by Coinbase director of communications Elliott Suthers restated the firm’s commitment to pursuing the Canadian market. In particular, the executive indicated that Coinbase regarded Canada as the gateway for its international road map.

Suthers affirmed that Coinbase would prioritize compliance with the requirements put forth by the regulatory agency. He ruled out awareness of Binance pulling out of Canada. It was still early for the community to speculate that Binance would exit Canada, considering that the entity’s chief executive, Changpeng Zhao, has the country’s citizenship.

A subsequent communication from Binance revealed that the global leading exchange by transaction volume has ongoing engagement with CSA, signaling the pursuit of registration. Stan Magidson, who doubles as the CSA chair and chief executive of the Alberta Securities Commission, directed that firms unwilling to comply with the new regulations should exit Canada and offload Canadian customers.

The active engagement portrayed by the various crypto exchanges with the CSA follows the expiry of the March 24 deadline obliging operators to devote compliance with the tightening rules. The crypto community attributes the move as a response to the suffering caused by the recent implosion of high-profile exchanges ledby QuadrigaCX and FTX

Blockchain.com Joins Deribit and OkEX in Exiting Canadian Market

A scrutiny of the development in the Canadian crypto market reveals that Crypto.com has a definitive plan to operate. Blockchain.com and Deribit join OKEx in departing the Canadian market.

Kraken has, however, clarified that it would retain operations in the country despite the regulatory shakeup. Additional exchanges are set to announce whether to remain or depart the Canadian market.

The revised regulatory framework communicated on February 22 obliges crypto firms to segregate assets within their custody. Also, it stipulates tighter re-hypothecation rules and margin trading.

Editorial credit: 24K-Production / Shutterstock.com

Patrick Carter

Patrick Carter

Patrick Carter is a seasoned news writer known for his meticulous research and engaging storytelling. With a dedication to providing accurate and informative news coverage, his articles offer readers a comprehensive understanding of current events with a fresh and thought-provoking perspective.

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