[NEWS] Coinbase obtains restricted license in Canada to fully launch cryptocurrency business

Coinbase, a major US cryptocurrency exchange, announced on the 3rd that it has obtained a limited license in Canada. According to Coinbase, it has become the first international cryptocurrency exchange to receive limited dealer registration in Canada.

Coinbase obtained a limited license from Canada's CSA (Canadian Securities Administrators). Last year, Canada introduced new guidelines for cryptocurrency exchanges that limit the amount of cryptocurrency that certain investors can invest in, as well as registration requirements for cryptocurrency companies.

Coinbase said that obtaining this license "means that we have met the strict requirements of Canadian regulators regarding cryptocurrency trading and can operate legally in the country."

As the introduction of new regulations has led to the withdrawal of Binance, the world's largest cryptocurrency exchange, from Canada, Coinbase aims to expand its business in the country.

Last year, cryptocurrency exchange Kraken applied for a PRU (pre-registration agreement) with the Ontario Securities and Exchange Commission. It announced that it has begun the process of registering in Canada.

Coinbase applied for PRU in March of last year. It then announced that it would begin operations in the country in August of the same year.

Coinbase's Canadian director, Lucas Matheson, told CNBC in an interview, "We've been working in Canada for nearly three years, specifically working with the Ontario Securities Commission over the past 12 months. We've worked with regulators to build a compliant platform to offer Canadians."

Matheson added, "Canada's regulatory environment is more tolerant of cryptocurrency exchanges than the U.S."

U.S. dispute continues

Coinbase and other cryptocurrency exchanges are currently in a lawsuit with the SEC (U.S. Securities and Exchange Commission) over violations of securities laws. Coinbase in particular is not doing well, with its motion to dismiss denied by the court last month.

In response to this situation, Coinbase is showing signs of focusing on expanding its business outside the U.S.

In conjunction with the acquisition of this license, Matheson noted, "The size of the (Canadian) cryptocurrency market is large." He then said, "Coinbase will be the first and largest international cryptocurrency exchange registered in Canada. We will help millions of Canadian residents access the digital economy."

Reference: Announcement
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