Coinbase Canada CEO calls for permanent crypto regulation beyond trading
In brief
- Coinbase Canada CEO Eric Richmond seeks permanent regulation to expand into derivatives, DeFi, and tokenized assets
- Canadian regulators rely on temporary exemptions rather than permanent digital asset legislation
- U.S. regulatory clarity on tokenized securities outpaces Canada's framework
- Coinbase Financial Markets holds international exemption for crypto futures to permitted customers
Regulatory gaps in Canada
Canada was among the world's earliest jurisdictions to approve spot crypto exchange-traded funds and established a registration framework for crypto trading platforms. But Richmond pointed out that much of that progress relied on regulatory staff notices and company-specific exemption orders rather than legislation specifically designed for digital assets.
The gap is widening. The U.S. has moved further in issuing detailed guidance for tokenized securities, collateral, custody and capital treatment. Meanwhile, Canadian regulators remain at a predominantly consultative stage regarding tokenization, with limited exemptive relief for pilot projects.
"It's not a new bespoke legislative framework. And that is something I actually think we still need," Richmond said in a statement.
Expanding the product suite
Richmond, who held executive roles at Shakepay and Coinsquare before joining Coinbase, wants to bring more crypto products available to U.S. customers north of the border. The firm ultimately wants to expand beyond just a crypto trading platform, offering a broader suite of financial products built on blockchain infrastructure.
One example: Coinbase U.S. offers a stablecoin lending program to Coinbase One customers that pays about 7% APY. That product isn't available to Canadian users, who instead earn up to 4.5% APY for holding USDC on Coinbase.
On derivatives, Coinbase hopes to roll out access to certain crypto futures products for permitted Canadian customers through its Coinbase Financial Markets unit. The unit received an "international exemption" from Canadian regulators to offer such products in Canada.
But exemptions are temporary. Richmond's message to Ottawa is clear: permanent rules beat ad-hoc relief.
Frequently asked questions
Why can't Coinbase offer all U.S. products to Canadian customers right now?
Canadian regulators rely on temporary exemptions and company-specific exemption orders rather than permanent legislation for digital assets. This limits what products Coinbase can legally offer without explicit regulatory approval for each product.
How is the U.S. regulatory approach to crypto different from Canada's?
The U.S. has issued detailed guidance on tokenized securities, collateral, custody, and capital treatment. Canada's regulators remain at a consultative stage with limited exemptive relief for pilot projects, creating a gap in regulatory clarity.
What is Coinbase Financial Markets and what does it do?
Coinbase Financial Markets is a unit that received an international exemption from Canadian regulators to offer crypto futures products to permitted Canadian customers.
