HomeCryptoThe recognition of Coinbase as the largest registered crypto exchange in Canada

The recognition of Coinbase as the largest registered crypto exchange in Canada

The authorities of Canada have granted Coinbase a registration as a “restricted dealer”, allowing the crypto exchange to operate in the country. 

Coinbase has started its efforts to expand in Canada since last year, despite continuing to deal with US regulatory authorities on similar issues. Let’s see all the details below. 

Crypto exchange Coinbase: expansion and recognition in the Canadian market

As anticipated, Coinbase’s expansion in Canada has overcome a significant hurdle with the obtaining of registration as a “restricted dealer,” the company announced on Thursday. 

Confirming itself as the largest cryptocurrency exchange registered in that jurisdiction. 

This milestone represents a significant step for Coinbase. Which, since the country introduced new policies on cryptocurrencies last year, has been seeking to obtain this status with the Canadian Securities Administrators.

The recent registration, signed by the Ontario Securities Commission (OSC), puts Coinbase on a path towards government-approved operations that had so far eluded them in the United States.

Lucas Matheson, CEO of Coinbase Canada, stated in a press release the following: 

“This is a significant milestone in Coinbase’s journey in Canada.”

He then added that the exchange will continue to collaborate with Canadian partners to accelerate the adoption of digital assets, promote economic empowerment, and reform the financial system. 

Previously, Coinbase had hired 200 people to develop a custom platform for Canada, which represents its second largest hub globally after the United States. Additionally, it had established a payment rail system with Peoples Trust.

The recent approval, dated April 3, confirmed that, despite being registered as a “restricted dealer”, Coinbase intends to apply for two more registrations.

The first as an investment dealer to seek membership in the Canadian Investment Regulatory Organization (CIRO, formerly IIROC) and the second as an alternative trading system (ATS). This designation places Coinbase as the tenth company to receive such recognition.

Negotiations with Canadian banks to promote the crypto ecosystem

As we know, in the United States, Coinbase has faced a dispute with the Securities and Exchange Commission (SEC) for allegations of operating illegally and offering unregistered securities to investors.

The company argued in a federal court that the SEC is asking for the impossible, as current US securities laws do not allow cryptocurrency companies to conduct business according to the requirements imposed.

However, Coinbase is negotiating with major Canadian banks, seeking their support for the development of the crypto ecosystem in Canada. 

A market in which the company has recently entered while facing regulatory uncertainty in its home country.

In an interview with CoinDesk, Lucas Matheson, director of Canadian operations at Coinbase, revealed that he has had discussions with major Canadian banks, without specifying the names.

The major financial institutions of Canada, collectively known as the Big Five, include Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce.

Matheson has stated the following: 

“We have five banks that control the majority of the Canadian banking sector, so one of the priorities in Canada is to collaborate with these leading institutions to promote the adoption of cryptocurrencies and support the growth of our sector. I am confident that in the coming quarters we will see some of the major Canadian banks involved in the cryptocurrency economy.”

Matheson also highlighted the commitment of Canadian regulatory authorities in providing a adequate regulatory framework for the digital asset industry, thus supporting the country’s ambitions to become a leader in the crypto sector.

The US government transfers $131 million in Bitcoin to Coinbase

The United States government has recently moved over 131 million dollars in Bitcoin (BTC) confiscated from the Coinbase wallet, according to several blockchain tracking companies.

According to data provided by the crypto tracker Lookonchain, the US government has transferred a total of 30,174.703 BTC, of which 2,000 BTC were sent to the Coinbase Prime wallet, with a total value of 1.98 billion dollars.

The blockchain intelligence company Arkham has also confirmed the transfer to Coinbase Prime. Julio Moreno, head of research at CryptoQuant, confirmed that the 2,000 Bitcoins sent to Coinbase have been sold. 

These BTC come from the treasure confiscated from James Zhong, who pleaded guilty to telematic fraud and manipulation of transactions on the darknet Silk Road market.

According to Arkham, the United States government still holds approximately 213,246 BTC worth 14.13 billion dollars, mainly acquired through seizures related to criminal proceedings. 

It also holds Ethereum (ETH) worth about 4.3 million dollars. However, cryptocurrency sales by the government have not always followed optimal timing.

In March 2023, he sold 9,861 BTC for a value of approximately 216 million dollars. However, due to the increase in digital asset prices, the same amount of Bitcoin is now worth more than 654.4 million dollars.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.