19th May 2023 – (New York) Coinbase, one of the largest cryptocurrency exchanges, has expressed its admiration for Canada’s regulatory approach to the industry. According to Nana Murugesan, the Vice President of International and Business Development at Coinbase, the company prefers Canada’s regulation by engagement as opposed to the United States’ regulation by enforcement. Murugesan said that the lack of clarity in the United States makes it difficult for companies to know what rules they are expected to follow. On the other hand, Canada’s Pre-Registration Undertaking (PRU) regime for crypto exchanges has been praised by Coinbase as a more transparent and predictable approach to regulation.
Coinbase, which signed Canada’s enhanced PRU in March of this year, has been heavily invested in the country for years. The exchange has around 200 engineers based in Canada, according to Coinbase Canada Country Director Lucas Matheson. With regulatory clarity provided by regulators, and Binance out of the way after several large players departed from the country due to the PRU, Canada presents a solid opportunity for Coinbase.
The plan for Coinbase is to provide a more seamless fiat-to-crypto experience for Canadian customers by introducing new payment rails. Matheson revealed that the exchange will be adding Interac payment rails to its platform in the coming months. Interac is Canada’s interbank payment network that links local financial institutions to individuals and enterprises for electronic payment systems.
Coinbase’s positive view of Canada’s regulatory approach is in contrast to the situation in the United States, where the exchange iscurrently at loggerheads with the Securities and Exchange Commission (SEC) over allegations of violating securities laws. The recent regulatory crackdown in the US has spooked many companies and investors, who are already looking to relocate to other jurisdictions with more favorable regulatory conditions.
While Canada has also put pressure on the crypto industry through its PRU regime, which saw several large players depart from the country, Coinbase remains optimistic about the country’s regulatory approach. The exchange has praised Canada for its regulation by engagement and clarity in setting out rules for companies to follow. This approach is in line with Coinbase’s playbook, and the company sees Canada as a promising market with growth potential.
Murugesan declined to comment on competitors like Binance, but emphasised that every company has its own path to follow. For Coinbase, the developments in Canada align with its goals, and the exchange is committed to providing a seamless experience for Canadian customers.