Why Coinbase is Praising Canada’s Cryptocurrency Regulations

Coinbase’s Vice President of International and Business Development Nana Murugesan recently praised Canada’s cryptocurrency regulation. Murugesan described Canada’s approach as regulation by engagement, rather than regulation by enforcement.

With movement and regulatory clarity in Canada, many are comparing this with the United States, with next year’s Presidential election on the horizon. We have more details on Coinbase’s planned expansions in Canada and how they are reacting to the regulatory terrain in the United States.

What is the Canadian PRU?

Canada is exerting influence on the crypto industry by implementing its Pre-Registration Undertaking (PRU) regime for cryptocurrency exchanges, leading to the departure of numerous prominent players, notably Binance, the largest exchange group in terms of trading volume.

However, when questioned about the comparison between Canada’s PRU and the situation in the United States, Nana Murugesan, the Vice President of International and Business Development at Coinbase, expressed a preference for Canada’s approach.

“There’s a couple of ways we see regulators acting: one is regulation by engagement; the other one is regulation by enforcement,” Murugesan said during an interview. “The latter part is tough, because you don’t know what the rules are. But the Canadian regulator is definitely the former, which is regulation by engagement – which we love.”

In fact, Coinbase signed the Canadian Pre-Registration Undertaking in March of this year. In many ways, having regulatory clarity seems to be giving the green light for Coinbase to move forward in Canada.

What this means for Canadians

This approach from the Canadian government and the positive response from major crypto players such as Coinbase is good news overall for crypto investors in Canada. It means increased access to Web3 financial services and to the products and services that you can buy with crypto.

For example, online casinos available to Canadian players are increasingly opening up to cryptocurrency deposits. Here, you can learn how to find the best online casino in Canada. They even organize them by the best one overall, the best new ones, and the best sites with online live dealers. They even have tips for which cryptocurrency to use at online casinos, and where you can get extra bonuses.

Additionally, Coinbase has promised new services and functionalities coming to consumers in Canada. Coinbase has the plan to provide a smoother way to exchange between fiat and crypto currencies.

Within a few months, they will be adding Interac to their payment options. Interac is an electronic payment system in Canada which links local financial institutions to enterprises and individuals. This promises to expand the ease and accessibility for investors in Canada to participate in the cryptocurrency economy.

Compared to regulations in the United States

The situation in the United States is more tenuous for Coinbase. While the United States is their biggest market, they are facing increasing troubles from the Securities and Exchange Commission.

Shifting away from the United States would pose a significant challenge for the crypto exchange, given that approximately 86% of Coinbase’s net revenue in the 12-month period ending on March 31 was derived from its operations in the U.S., according to the report.

Recently, the prominent financial institution Citi downgraded its rating on Coinbase from buy to neutral and reduced its price target for the crypto exchange from $80 to $65. The decision was primarily influenced by regulatory uncertainty surrounding the industry.

However, with Ron Desantis’ recent launch of his presidential campaign, things are looking more optimistic in terms of creating a favorable crypto regulatory framework. Desantis seems to be friendly to cryptocurrency, especially symbolized by the launch of his presidential campaign with billionaire and crypto enthusiast Elon Musk.

DeSantis voiced his resistance to excessive government intervention, perceiving the regulation of cryptocurrencies as a violation of personal liberties. He underscored the perceived threat that Bitcoin poses to the existing system, suggesting that attempts to ban it were driven by apprehension regarding its potential for disruption. DeSantis aimed to protect individuals’ freedom to participate in financial activities without unjustified interference, thereby expressing his endorsement for the crypto industry.

We are still a year and a half from the November 2024 elections, but players in the cryptocurrency industry are already looking forward and planning their business plans.