Crypto exchange Coinbase has revealed its love for Canada, praising the country’s approach toward crypto regulations. The exchange argued that rules in the Great White North are clear, and companies are allowed to engage with regulators. In comparison, the United States crypto regulations clarity deficient and are effectuated on the industry.
Coinbase – Its Love for Canada and Issues With SEC
The world’s biggest crypto exchange recently exited Canada, citing its crypto regulations. Still, Coinbase feels that it can play well on the turf recently left by one of the most prominent players. Canada has this Pre-Registration Undertaking (PRU) regime for the crypto exchanges operating or wanting to operate there.
When asked how Canada’s PRU differs from the U.S. crypto regulations, Nano Murugesan, VP of International & Business Development at Coinbase, said they prefer the Canadian approach. He further argues about a couple of ways to regulate crypto. One is by engagement, and the other by enforcement.
In the latter part, the companies are not clear about the rules, but Canada’sCanada’s engagement approach is what attracts Coinbase. In March 2023, the crypto exchange signed the enhanced PRU with the principal regulator Ontario Securities Commission (OSC).
They have also invested heavily in the Great White North over the years and have around 200 engineers based in the country. This information was revealed by Lucas Matheson, Coinbase Canada’sCanada’s Country Director.
Coinbase now plans to provide a seamless fiat-to-crypto experience for customers of Canada by introducing new payment mechanisms. Matheson said The exchange would add interactive payment rails to its platform in the coming months.
The country’s interbank payment network, Interac, links local financial institutions with enterprises and individuals for e-payment requirements. The regulators provide the required regulations, and with the world’s biggest crypto exchange out of the field, Coinbase emerges as a strong player in Canada.
Coinbase is fighting a bout with the financial watchdog of the United States, the Securities and Exchange Commission (SEC). The agency issued a Wells Notice to the exchange on March 23, 2023. The notice warns of pursuing enforcement actions regarding unregistered securities and staking services.
The actions would include an injunction or cease-and-desist without any condition of explanation regarding what activities were found under violation. Paul Grewal, Coinbase’s chief legal officer, argued about exploring legal options which would provide clarity. He also said that the SEC was not fair and reasonable during its engagement with crypto companies and digital assets.
United States authorities waged an open war against crypto businesses operating on its soil. The infamous case of Ripple vs. SEC is a prime example, which has been going on since December 2020. The agency argues that XRP is a security and Ripple is fighting otherwise.
Massachusetts Senator Elizabeth Warren even started an Anti-Crypto Army as a part of her re-election campaign. However, the U.S. is trying to save the country from the destructive effects of crypto, like money laundering, terror funding, human and drug trafficking, etc. But the methods they apply are only welcomed by some in the industry.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/20/coinbase-loves-the-canadian-approach-toward-crypto-regulations/