A former Shopify executive has been hired as Coinbase’s new country director in Canada.
As part of its strategy to adapt to the changing regulatory landscape in Canada, Coinbase has made this decision.
Canada has taken steps to tighten regulations around cryptocurrencies after the recent failure of several high-profile digital asset firms. Still, Coinbase has revealed that it has implemented some new measures as the exchange eyes expansion in Canada’s recent blog post.
First, Lucas Matheson has been hired as the country director for Canada.
According to Coinbase’s press release, Lucas’s background at Shopify and with top Canadian financial institutions will be invaluable as the exchange continues its growth.
Coinbase has also announced substantial investments in homegrown Canadian innovation. The business has reportedly already hired more than 200 engineers nationwide to expand its tech hub.
For the same reason, “our global leadership team will be making frequent travels to Canada to interact with regulators, partners, and the community, to better understand the Canadian market and its specific needs.”
In addition, Coinbase revealed that it had signed an improved Pre-Registration Undertaking (PRU) in Canada, which is required by members of the Canadian Securities Administrators (CSA) as a condition of members allowing unregistered crypto asset trading platforms (CTPs) to continue operations.
In its release, the exchange said, “We continue to work with politicians on a solid crypto regulatory framework for Canadians,” adding that it backs efforts by Canadian regulators to clarify the market.
Coinbase’s decision follows the CSA’s announcement earlier this month that it will impose stricter regulations on cryptocurrency exchanges in the country.
Cryptocurrency exchange OKX emailed its Canadian subscribers after the announcement that it “would no longer provide services or enable users to establish new accounts in Canada starting on Mar. 24, 2023, 12:00 AM EST,” citing the new legislation.
As a result of the deteriorating regulatory climate in Canada, Binance, the largest cryptocurrency exchange by trading volume, is reportedly planning to relocate.
Coinbase Considers Overseas Trading Platform Amid U.S. Crypto Crackdown
In light of rising regulatory pressure and a worsening financing climate for crypto businesses, Coinbase is considering establishing a digital asset exchange outside the United States.
After increased regulatory scrutiny in the US, Coinbase is considering an expansion. The SEC has specifically begun a harsh assault on cryptocurrency firms in response to the recent market slump.
In a “Wells warning” given to Coinbase last week, the government threatened legal action against the cryptocurrency exchange for certain digital assets offered on the platform, the staking tool Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
The CEO of Coinbase, Brian Armstrong, has expressed concern that the SEC’s aggressive regulatory stance could force the crypto business to relocate outside of the United States.
The head of the crypto added that practically all major financial hubs had established comprehensive crypto regulation, such as Singapore, Hong Kong, London, and most recently, the European Union, and that the United States should do the same if it doesn’t want to fall behind.