In contrast to the U.S.’s lack of clarity and enforcement-based regulation for the industry, the world’s largest cryptocurrency exchange, Coinbase (COIN), says it prefers Canada because there the regulations are clear and businesses can interact with the regulators.
The Securities and Exchange Commission (SEC), which has warned the exchange that it would be the focus of an enforcement action for breaking securities regulations, and Coinbase are now at odds. Numerous businesses and investors are already considering moving to other countries as a result of the current regulatory crackdown in the United States.
However, Nana Murugesan, VP of international and business development at Coinbase, stated that he likes Canada’s PRU when contrasted to the circumstances in the U.S.
Murugesan stated in an interview that there are two ways that regulators might act: one is regulation by engagement, and the other is regulation by enforcement. “The last half is difficult since you are unsure of the regulations. However, the Canadian regulator favors the first approach, which is regulated by interaction, which we love.
According to Coinbase Canada Country Director Lucas Matheson, the company has had a significant investment in the nation for many years and now employs 200 engineers there. Coinbase signed Canada’s enhanced PRU in March of this year, and its primary regulator is the Ontario Securities Commission (OSC).
Due to regulatory stability provided by authorities and Binance’s departure from Canada, Coinbase has an excellent opportunity in Canada.