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Coinbase: First global crypto exchange with Canadian Restricted Dealer status

EditorIsmeta Mujdragic
Published 04/04/2024, 10:34 AM
© Reuters
COIN
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TORONTO - Coinbase (NASDAQ:COIN) has achieved registration as a Restricted Dealer with the Canadian Securities Administrators (CSA), marking a significant stride in its Canadian expansion. This registration positions Coinbase as the first major international cryptocurrency exchange to secure such status in Canada, following its initial launch in the country in August 2023.

The designation comes after a series of collaborative efforts with Canadian regulators, starting in March 2023 with the signing of an Enhanced Pre-Registration Undertaking. This step illustrated Coinbase's commitment to adhering to regulatory standards and striving for operational excellence.

The exchange has worked closely with various Canadian financial institutions, including banks, investment advisors, and pension funds, to ensure a smooth integration into the Canadian financial landscape.

Coinbase's CEO for Canada, Lucas Matheson, expressed excitement about the development, emphasizing the company's dedication to promoting digital asset adoption and contributing to the evolution of financial systems in Canada.

Coinbase's registration is part of a broader strategy to foster trust and innovation within the cryptocurrency market. A recent survey conducted by Coinbase in partnership with Angus Reid revealed that 72% of Canadians value the regulation of cryptocurrency exchanges, with 29% indicating they would be more likely to invest in cryptocurrency if the industry were more regulated.

The survey also highlighted the motivations behind cryptocurrency investments in Canada, with curiosity, diversification of investments, and potential financial gains being the primary drivers.

As part of its commitment to the Canadian market, Coinbase has taken several steps, including launching Interac payment solutions, hiring nearly 200 local employees, and investing in the Canadian tech ecosystem through Coinbase Ventures.

Coinbase's Chief Policy Officer, Faryar Shirzad, underscored the importance of regulation for the success of the crypto industry and commended Canadian regulators for their efforts to provide clarity within the sector.

The registration in Canada adds to Coinbase's growing international presence, with the company having obtained licenses and registrations in multiple jurisdictions over the past year.

Coinbase, listed on NASDAQ: COIN, continues to work on its mission to increase economic freedom and update the traditional financial system through its platform, which supports various crypto-related activities.

This article is based on a press release statement from Coinbase.

InvestingPro Insights

As Coinbase garners a new foothold in the Canadian market with its recent registration, investors are taking note of the company's financial metrics and market performance. According to InvestingPro data, Coinbase's market capitalization stands at a robust $62.7 billion USD, reflecting the significant scale of its operations and investor confidence in its business model.

Despite a challenging environment for the tech sector, Coinbase has demonstrated a strong return over the last three months, with a 61.68% price total return, indicating a positive investor sentiment and a potential rebound from previous market dips. This aligns with the 302.27% one-year price total return, showcasing the stock's impressive performance over a longer period.

One of the notable InvestingPro Tips for Coinbase is the anticipation of net income growth this year. This is a key factor for investors looking for profitable opportunities, especially in the dynamic and often unpredictable cryptocurrency market. Furthermore, two analysts have revised their earnings upwards for the upcoming period, suggesting that there may be positive developments on the horizon for Coinbase that could influence its financial outcomes.

Investors interested in a deeper dive into Coinbase's financials and market potential can explore additional InvestingPro Tips on the platform. There are 11 more tips available, providing a comprehensive analysis of the company's performance and prospects. For those looking to leverage these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

With its recent Canadian registration and promising financial indicators, Coinbase is positioning itself as a leader in the cryptocurrency exchange industry, not just in North America but on a global scale.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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