Coinbase Embraces Canada’s Clear Crypto Guidelines Amidst U.S. Regulatory Challenges

In a recent interview, Coinbase’s VP of International and Business Development, Nana Murugesan, expressed appreciation for Canada’s proactive approach to crypto regulation. As the cryptocurrency exchange giant faces regulatory challenges in the United States, Coinbase highlights Canada’s regulatory clarity and engagement with industry players as a favorable environment. This comes as the U.S. regulatory crackdown and lack of clarity continue to unsettle companies and investors, prompting some to explore relocation options to other jurisdictions.

Coinbase’s positive sentiment towards Canada contrasts with the country’s implementation of the Pre-Registration Undertaking (PRU) regime for crypto exchanges, which led to the departure of several major players, including Binance, the largest exchange group by volume. Despite this, Coinbase’s Murugesan emphasized that Canada’s regulatory approach, characterized by engagement with industry participants, stands out in comparison to the U.S. system.

Canada’s Collaborative Crypto Regulation: Coinbase’s Choice

Regulation by engagement, as preferred by Coinbase, involves regulators working collaboratively with the industry to establish clear rules and guidelines. This approach provides companies with greater visibility and allows them to actively participate in shaping the regulatory landscape. On the other hand, regulation by enforcement, as seen in the U.S., entails the imposition of rules without sufficient clarity, making compliance challenging for market participants.

Coinbase has been heavily invested in Canada for years, with approximately 200 engineers based in the country. The exchange signed Canada’s enhanced PRU in March of this year, with the Ontario Securities Commission (OSC) acting as its principal regulator. Intending to enhance the fiat-to-crypto experience for Canadian customers, Coinbase plans to introduce new payment rails in the coming months, including Interac, Canada’s interbank payment network.

Coinbase expresses its preference for Canada’s engagement-based regulatory approach, highlighting the advantages of regulatory clarity and collaboration. As the U.S. regulatory landscape remains uncertain, Coinbase’s commitment to Canada signals the country’s potential as a favorable jurisdiction for cryptocurrency companies seeking stability and regulatory transparency.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only. 

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