Coinbase Says Canadian License Makes It Country's Biggest Registered Crypto Exchange (2024)

Coinbase's expansion into Canada has cleared the hurdle of a "restricted dealer" registration, the company said on Thursday, making it the biggest registered crypto exchange in that jurisdiction.

The U.S. exchange had been seeking this status from the Canadian Securities Administrators since the country set up new crypto policies last year, and the new registration signed by the Ontario Securities Commission (OSC) sets Coinbase on a path of government-approved operation that has so far eluded it in the U.S.

“This is a significant milestone in Coinbase’s journey in Canada,” said Lucas Matheson, the CEO of Coinbase Canada, in a statement. He said the exchange will keep working with Canadian partners "to accelerate the adoption of digital assets, foster economic empowerment, and reshape the financial system.”

Coinbase had previously hired 200 people to work on a tailored platform for Canada – its second-largest hub globally after the U.S. – and established a payment rails system with Peoples Trust.

"While registered as a restricted dealer, the Filer intends to apply for registration as an investment dealer, and to seek membership with the Canadian Investment Regulatory Organization (CIRO, formerly IIROC) and registration as an alternative trading system (ATS)," according to the approval dated April 3, making Coinbase the tenth firm to receive the designation.

In the U.S., Coinbase has been battling with the Securities and Exchange Commission (SEC) over claims that it's operating illegally and offering unregistered securities to investors. Coinbase has contended in federal court that the SEC is asking for the impossible because U.S. securities laws as-written don't allow for crypto firms to do business.