Coinbase Canada gets CSA registration

U.S.-based publicly traded crypto-trading platform Coinbase Inc. has been granted registration in Canada too.

The Canadian Securities Administrators (CSA) granted Coinbase Canada Inc.’s bid for registration as a restricted dealer under the CSA’s approach to bringing the fledgling crypto sector into the regulated sphere.

“To foster innovation and respond to novel circumstances, the CSA has considered an interim, time-limited registration that would allow [crypto platforms] to operate within a regulated environment, with regulatory requirements tailored to the [platform’s] operations,” the CSA said in the order granting relief to Coinbase. 

While it’s registered as a restricted dealer, Coinbase will seek registration as an alternative trading system and as an investment dealer, along with membership in the Canadian Investment Regulatory Organization, the order noted.

In a release, Coinbase said the CSA approval follows a process that began in March 2023 when the firm signed a pre-registration undertaking with the CSA.

“Furthermore, Coinbase collaborated with Canadian banks, investment advisors, and pension funds to demonstrate its dedication to facilitating its successful navigation of the evolving digital asset realm,” it said.

“Regulation is critical to the success of the crypto industry and is essential for building trust,” said Faryar Shirzad, chief policy officer with Coinbase, in a release. 

“We applaud the Canadian securities regulators’ demonstrated commitment to bring clarity to the industry and are excited for what this next chapter holds for Coinbase in Canada,” he said.

“The overall goal of the regulatory framework is to ensure there is a balance between the need to be flexible and facilitate innovation in the Canadian capital markets, while upholding the regulatory mandate of promoting investor protection and fair and efficient capital markets,” the CSA said in its order.

With almost 200 full-time employees in Canada, Coinbase said the country is the company’s largest tech hub outside the U.S.

“This is a significant milestone in Coinbase’s journey in Canada,” said Lucas Matheson, CEO of Coinbase Canada, in a release. 

“We’re excited to continue working with stakeholders across Canada to accelerate the adoption of digital assets, foster economic empowerment, and reshape the financial system,” he said.