According to the CSA, there are two registered entities associated with Coinbase in Canada, namely Coinbase Incorporated as a limited dealer and Coinbase Canada as an international dealer. This gives the crypto exchange the legal authority to conduct transactions with crypto assets while complying with the stricter requirements of Canadian regulators.
“With these approvals, Coinbase has become a legal cryptocurrency company in Canada. This was preceded by many months of hard work, starting in March 2023 when we submitted our pre-registration application. We have proven our ability to comply with regulatory requirements,” Coinbase announced.
In 2023, Canada introduced new rules for cryptocurrency exchanges, limiting the scope of investments in digital assets, as well as requiring companies in the industry to register. The tightening regulatory environment has led Binance, the world's largest cryptocurrency exchange by trading volume, to cease operations in Canada.
Obtaining a license in Canada is not the first major step by Coinbase to develop its business in the country. In August 2023, Coinbase partnered with local financial services company Peoples Trust Company to enable deposits and withdrawals from Coinbase wallets through the Interac service.
Source: Bits
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