U.S. crypto giant, Coinbase, has recently plunged into discussions with prominent Canadian banking institutions, aiming to persuade them on crypto adoption. Amidst regulatory ambiguity in the U.S., Coinbase’s director of Canada operations, Lucas Matheson, expressed optimism that larger banks in Canada could soon embrace the crypto industry.
“Canadian banks have a close relationship with the majority of their citizens”, Matheson commented, making his intentions clear – he wants to cooperate closely with top-tier banks to bring crypto banking into the mainstream in Canada. It appears that the establishment of crypto-friendly banking relationships could introduce a welcoming wind of change for crypto enthusiasts in Canada.
This announcement closely follows Coinbase’s triumphant stride into the Canadian market, the result of friction from a lawsuit issued by the U.S. Securities and Exchange Commission for functioning as an unregistered securities exchange. Despite this obstacle, Coinbase’s admittance of Canada’s open-minded approach to cryptocurrency regulation stands unfaltering, exhibiting a prospect of optimism amidst uncertainty.
The digital currency exchange recently acquired its pre-registration undertaking in Canada, with restrictive dealer registration to follow soon. Matheson hinted at the exchange’s progression into the newly formed Canadian Investment Regulatory Organization. This strategic navigation allows Coinbase to provide leveraged and derivative products to both retail and institutional investors.
Cryptocurrency regulation has become an epoch-defining topic globally, with approaches varying deeply across nations. Matheson distinguished between ‘enforcement-based regulation’, emulating current US policies, and ‘engagement-focused regulation’, that Canada is presently practicing. The later approach offers companies like Coinbase the space to explore and grow, while abiding by regulatory norms.
Education seems to be one of the primary missions for Matheson. He emphasized on amplifying awareness about the benefits of a decentralized system among Canadians and enlarging relevant payment options within the country.
However, the Canadian crypto landscape is not entirely rosy. Binance and Paxos, two prominent crypto firms, have recently retreated from Canada due to the introduction of stricter regulations. Nevertheless, Coinbase and Kraken, among others, have propelled their business operations into Canada, drawn by the nation’s proactive engagement with the crypto industry.
Canada’s crypto regulations offer a fascinating study of accommodating innovation while ensuring security. Can this model be the key to striking the right balance that the crypto-community has long been yearning for? As the industry awaits further breakthroughs, such discussions promise an intriguing journey for the crypto universe.
Source: Coindesk
