Coinbase, a U.S.-based crypto exchange, is in talks with Canadian banking giants to support the crypto ecosystem in the nation. Lucas Matheson, the director of Coinbase’s Canada operations, said in an interview with journalists, We have five banks that have the majority of Canadians banking with them, and so one of the things that I’m working on in Canada is working closely with tier-one banks to start banking crypto and start supporting our industry.
The exchange recently received its pre-registration undertaking (PRU) in Canada, which commits it to meeting several regulatory requirements by a certain date. After that, it will obtain a restricted dealer registration and move to the newly formed Canadian Investment Regulatory Organization, allowing Coinbase to get its full dealer registration and offer leveraged and derivative products to both retail and institutional investors.
Matheson said that he is focused on educating Canadians about the advantages and importance of a decentralized system and expanding the payment options in the country. Canadian regulators in July proposed capital plans for banks and insurers who hold crypto assets in an effort to bring more clarity on how to treat the asset class when it comes to capital and liquidity.
When we think about regulation internationally, we see two types of regulation: regulation by enforcement, like we’re seeing in the U.S., and regulation by engagement, like in Canada, Matheson said.