Coinbase is in talks with Canadian banking giant to promote cryptocurrencies

Coinbase in talks with Canadian bank to promote cryptocurrencies.

Author: Helene Braun, CoinDesk; Translation: Song Xue, LianGuai

The US-based cryptocurrency exchange Coinbase is in talks with Canadian banking giants in an effort to persuade them to support the country’s cryptocurrency ecosystem. The company recently entered the ecosystem to address regulatory uncertainties in its home country.

Lucas Matheson, Coinbase’s Director of Canadian Operations, revealed in an interview that he has been in discussions with Canada’s tier-one banks. He did not disclose their names, but the largest banks in Canada are collectively known as the “Big Five”: Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce.

Matheson stated, “We have the Big Five banks, where most Canadians do their banking, so one of the things I’m doing in Canada is working closely with tier-one banks to start offering cryptocurrency banking services and support our industry.” “I expect that over the next few quarters, we’ll start to see some of the larger banks in Canada getting involved in the crypto economy.”

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Coinbase was sued by the US Securities and Exchange Commission in June for operating as an unregistered securities exchange, and it began operating in Canada this month. Coinbase has praised Canada’s cryptocurrency regulatory policies.

Matheson said that Canadian regulators have been committed to finding the right regulatory framework for the digital asset economy and helping the country become a leader in the field.

The exchange recently received a Pre-Registration Undertaking (PRU) in Canada, committing to meet several regulatory requirements by a specific date. Matheson stated that after this, it will obtain restricted dealer registration and transition to the newly established Canadian Investment Regulatory Organization, allowing Coinbase to obtain full dealer registration and offer leverage and derivative products to retail and institutional investors.

“When we think about international regulation, we’ll see two types: regulation by enforcement, like what we see in the US, and regulation by participation, like in Canada,” he said.

As for Coinbase’s recent goals, Matheson stated that his focus is on educating Canadians about the advantages and importance of decentralized systems and expanding the country’s payment options.

In July, Canadian regulators proposed a capital plan for banks and insurance companies holding crypto assets to provide clearer guidance on how to treat this asset class in terms of capital and liquidity.

In recent months, several US cryptocurrency companies have expanded their operations to Canada following the SEC’s crackdown on the US cryptocurrency industry, including Coinbase and Kraken. However, other companies like Binance and LianGuaixos have exited the Canadian market due to stricter regulations.

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