Coinbase (COIN) has received regulatory approval to begin operating its cryptocurrency exchange in Canada.
Specifically, Coinbase has been given an operating license in Ontario as a restricted dealer under the Canadian Securities Administrators (CSA).
The license paves the way for Coinbase, which is the world’s largest crypto exchange, to begin offering its services in Canada.
Coinbase has been looking to expand internationally as it faces a regulatory crackdown in its home market of America.
Last year, Coinbase selected Ireland as its base of operations in the European Union. The company has expanded to France, Spain, Singapore, Italy, Ireland, and the Netherlands.
Getting approval to operate in Canada was not easy, said the company in an interview with CNBC. Canada has among the strictest requirements for crypto asset dealings in the world.
In 2023, Canadian securities regulators introduced new guidelines for crypto exchanges that limit how much money certain investors can allocate to crypto, as well as mandatory registrations for cryptocurrency firms such as Coinbase.
The policy changes led Binance, another leading cryptocurrency exchange, to pull up stakes and leave Canada, saying it is “no longer tenable” to operate in the Canadian market.
Coinbase says it is the first international cryptocurrency exchange to receive restricted dealer registration in Canada.
Coinbase filed for the operating license in Ontario in March 2023 and has built a staff of 200 employees in Toronto in anticipation of the regulatory approval.
The operating license means the crypto exchange will now be a viable option for Canadian investors who are interested in allocating capital to digital assets.
In the U.S., Coinbase is locked in a bitter legal battle with the U.S. Securities and Exchange Commission (SEC), which has accused the crypto exchange of violating securities laws.
The stock of Coinbase has risen 302% in the last 12 months and currently trades at $251.58 U.S. per share.
