Your daily dose of crypto news

Coinbase Obtains Dealer License in Canada

2 min read

Coinbase Obtains Dealer License in Canada

Coinbase, the cryptocurrency exchange based in the United States, has made a strategic move to expand its operations globally by obtaining restricted dealer licenses in Canada. The company has secured a license in Ontario and is now registered as a restricted dealer under the Canadian Securities Administrators (CSA), according to reports from CNBC on April 4. The CSA’s national registration data shows that there are two Coinbase-related entities registered in Canada. Coinbase Incorporated is registered as a restricted dealer, while Coinbase Canada is registered as an international dealer.

Restricted dealer registration is a specialized category used for firms that don’t fit into any other specific category. The requirements for firms with this status are determined individually by regulators. International dealers are not permitted to trade equity or debt securities of Canadian issuers, except for government issuers, as stated by legal intelligence source JD Supra.

With the new license in Canada, Coinbase has officially become a legally operating cryptocurrency firm in the country, making it a significant milestone in their three-year-long effort to establish themselves there. Coinbase’s country director for Canada, Lucas Matheson, commented on the news, stating that they have been working closely with the Ontario Securities Commission over the past year to make this happen.

When approached for a comment about the new license, Coinbase did not respond at the time of publication, as reported by .

Coinbase has been facing increased scrutiny and regulatory challenges in its home country, the United States. This move to expand their operations internationally is seen as a strategic response to the regulatory crackdown they have been facing domestically. It allows Coinbase to diversify their risk and explore new markets with more favorable regulatory environments.

Obtaining licenses and registrations from regulatory authorities is crucial for cryptocurrency exchanges like Coinbase to ensure compliance and operate legally. This step by Coinbase demonstrates their commitment to regulatory compliance and their determination to navigate through the challenges posed by different jurisdictions.

The cryptocurrency landscape in Canada has been evolving rapidly, and the government has taken a proactive approach in regulating the industry. The licensing of Coinbase as a restricted dealer in Ontario showcases the country’s willingness to encourage innovation and establish a favorable environment for cryptocurrency companies.

As Coinbase continues its global expansion, this move into Canada marks an important milestone for the company. It opens up new opportunities and enables them to serve Canadian customers in a more regulated and secure manner. With the increasing popularity and adoption of cryptocurrencies, establishing a presence in Canada allows Coinbase to tap into a growing market and position itself as a trusted and compliant platform for cryptocurrency trading.

Coinbase’s acquisition of restricted dealer licenses in Canada is a significant development for the company as it consolidates its position as a global player in the cryptocurrency industry. By diversifying its operations and expanding into new markets, Coinbase aims to foster innovation and cater to the increasing demand for cryptocurrencies, while ensuring compliance with regulations in each jurisdiction.

Leave a Reply

Copyright © All rights reserved.