Coinbase Aims to Stay in Canada; Binance Could Be Poised to Exit Amid Regulatory Shakeup

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Coinbase is in talks with regulators about remaining in Canada, according to a person familiar with the matter, as the country tightens rules for cryptocurrency exchanges. Larger rival Binance, however, looks likely to exit.

Coinbase, which is based in the U.S., is discussing getting the appropriate license to keep doing business in Canada, according to the person, who requested anonymity.

In a statement to CoinDesk, Elliott Suthers, Coinbase’s communications director, said, “We remain as committed as ever to the Canadian market as a core component of our international road map.”

Meanwhile, a second person with knowledge of the matter, who asked to remain anonymous, said Binance will probably pull out of Canada.

However, a spokesman for Binance – whose CEO, Changpeng Zhao, is a Canadian citizen – said the exchange “has not made definitive plans yet.” After the publication of this article, another Binance spokesperson told CoinDesk that the exchange “is actively engaged with the [Canadian Securities Administrators] in its pursuit of registration.”

Crypto.com also plans to remain in Canada, a third person familiar with the matter told CoinDesk. Blockchain.com confirmed to CoinDesk that it is leaving, and Deribit has told customers it’s departing.

Kraken is expected to make an announcement on the matter soon.

The new regulatory framework, announced Feb. 22, requires the segregation of assets held in custody and tightens rules for re-hypothecation, margin trading and certain trades involving proprietary tokens or stablecoins.

UPDATE (March 29, 2023, 22:34 UTC): Adds comment from a second Binance spokesperson.

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