Coinbase is reportedly in negotiations with Canadian regulators to obtain the necessary license to remain in operation within the country, according to an anonymous source familiar with the matter. Meanwhile, its larger rival Binance appears poised to exit Canada as regulations for cryptocurrency exchanges are heightened. Elliott Suthers, Coinbase’s communications director, has stated that their commitment to the Canadian market “remains as strong as ever” and is a core component of their international expansion plan.
Meanwhile, according to an anonymous source, Binance is likely to withdraw from Canada. However, a spokesperson for the exchange – whose CEO Changpeng Zhao holds Canadian citizenship – declined to confirm such plans as they have yet to be finalized. The country set a March 24 deadline for companies operating with cryptocurrencies in Canada relating to tightening of regulations; this follows a high-profile collapse of an exchange, QuadrigaCX, several years ago.
In addition to Binance, OKEx has already confirmed their departure while Crypto.com and Blockchain.com plan to stay in the region. Deribit also informed its customers that they are leaving, with Kraken likely to release an accompanying statement soon.
On February 22nd, the Canadian government announced a new regulatory framework for asset custody and trading. This framework requires that assets held in custody be segregated and impose stricter rules for re-hypothecation, margin trading, and trades involving proprietary tokens or stablecoins.
