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Coinbase wants to be Canada’s ‘everything exchange,’ but says clearer rules are needed first
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Coinbase is pushing to become an 'everything exchange' in Canada, offering derivatives, decentralized finance (DeFi) services, and tokenized assets to Canadian users. However, the company's newly appointed Canadian CEO, Eric Richmond, says the country's regulatory framework must first evolve from temporary exemptions to a permanent, bespoke legislative framework. Speaking at the Blockchain Futurist Conference in Toronto, Richmond emphasized the need for clear rules to support advanced crypto products already available in the United States.
Canada was an early mover in regulating digital assets, approving spot crypto exchange-traded funds (ETFs) and establishing a registration framework for trading platforms. Yet much of this progress relied on staff notices and case-by-case exemption orders rather than legislation specifically designed for digital assets. Richmond argues that this approach, while effective in the early days, now hinders the launch of more sophisticated products like higher-yield lending and broader futures trading.
The current patchwork of guidance contrasts with the United States, which has issued more detailed rules for tokenized securities, collateral, custody, and capital treatment. According to a July report from global law firm Norton Rose Fulbright, U.S. regulators have moved further in providing clarity, while Canadian regulators remain at a 'predominantly consultative stage,' with only limited exemptive relief for pilot projects. Neither country has a comprehensive permanent framework for tokenized assets, but the U.S. appears ahead in adoption and industry standards.
Richmond believes Canada needs a harmonized national framework to keep pace. 'It's not a new bespoke legislative framework, and that is something I actually think we still need,' he said. His comments reflect growing frustration among crypto firms, which see Canada falling behind despite its early leadership. Without clearer rules, companies may prioritize the U.S. market, potentially stifling innovation and investment in Canada.
The implications are significant for Canadian retail investors, who currently have limited access to advanced crypto products. Coinbase aims to offer a one-stop platform for all financial services on blockchain, but regulatory delays could postpone that vision. Richmond noted that the firm is committed to finding a regulated path, but progress depends on regulators moving beyond interim measures.
Looking ahead, Richmond called for collaboration between industry and policymakers to create a tailored framework. He expressed optimism that Canada can regain its pioneering role if it acts decisively. 'We just need to find the regulated path to get launches to Canadians,' he said, urging regulators to prioritize clarity to unlock the full potential of digital assets. The outcome will shape not only Coinbase's expansion but also Canada's competitiveness in the global crypto economy.
