By
Steve Muchoki
April 25th, 2024
Despite this growing interest in crypto, Canada has recently tightened the rules guiding its crypto ecosystem.
Director for Coinbase Canada Lucas Matheson is reportedly in talks with tier-one banks in Canada to support the crypto ecosystem. Matheson noted that he’s working to get the top banks to start banking crypto and supporting the industry.
While Matheson did not name any bank, there are five tier-one banks in Canada. These are collectively known as the Big Five. They include the Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce.
“I’m hopeful that over the next few quarters, we will see some of our larger banks in Canada start participating in the crypto economy,” Matheson said.
Coinbase Expanding Operations in Canada
Canada ranks as the world’s third-most crypto-aware nation. A recent survey by the Ontario Securities Commission showed that 30% of those surveyed planned to purchase crypto assets in the next year.
Despite this growing interest in crypto, the nation has recently tightened the rules guiding its crypto ecosystem. This decision followed the collapse of QuadrigaCX. Subsequently, all existing exchanges were given till March to adapt to stricter regulations or exit the nation.
Thereafter, Binance, OKX, Paxos, Blockchain.com, and Deribit announced their exits from the nation. Interestingly, it was after this that Coinbase officially launched in the Canadian market. So far, the exchange has signed a pre-registration undertaking (PRU). If it satisfies all regulatory requirements, it will receive a restricted dealer registration. This will allow it to offer leveraged and derivative products to all investors.
As part of its expansion efforts, the exchange entered into cooperation with Trustly last week. The partnership will allow Canadian users to deposit and withdraw funds directly from their bank account from/to their crypto wallet.
In the words of Nana Murugesan, Vice President of Coinbase International and Business Development, “Canada is well positioned to be a global leader in the crypto economy.”
Matheson Unveils Praises Canadian Regulator
At the time, Coinbase praised Canada’s progressive approach to crypto regulation. Unlike in the United States, where crypto regulation is by enforcement, Matheson claims that Canada employs regulation by engagement. This, he believes, will help the country find the right framework for its crypto industry.
While the exchange pursues full registration, Matheson noted that Coinbase Canada will educate Canadians about the advantages and importance of a decentralized system. He also plans to expand the payment options in the country in the short term.