The US’s biggest crypto exchange by trading volume, Coinbase made a major stride in Canada by gaining a registration license. This move will allow the crypto exchange to expand its operations outside the US. Coinbase is dealing with the regulatory crackdown led by the Securities and Exchange Commission (SEC).
Coinbase bags big approval
A report by CNBC revealed that Coinbase has bagged a registration in Ontario as a restricted dealer. This comes under the Canadian Securities Administrators (CSA) and shows compliance with the country’s strict rules for crypto asset dealings.
Canada had introduced a new set of guidelines for crypto exchanges back in 2023. These regulations include mandatory registrations for digital asset linked firms. These were the rules that pushed major players like Binance to exit the market. However, the US’s biggest crypto exchange’s big registration in Canada highlights its stance on meeting regulatory standards and operating legally.
The world’s biggest crypto exchange by trading volume, Binance’s exit had proven to be fruitful for Coinbase. Now, the US based exchange will move ahead to use this opportunity to grow its user base.
CoinMarketCap’s data shows that Binance’s 24 hour trading volume stands at around $25.1 billion. Coinbase’s trading volume amounts to $2.8 billion which is majorly less than Binance’s numbers.
A march towards recovery
Coinbase Global Inc (NASDAQ: COIN) stock price shot up by more than 2% as the trading hours began on Thursday. Its stock price had managed to recover after a huge slump witnessed in 2022. Coinbase’s price had surged by 252% in the last 6 months, while, it is up by 313% in the last one year. However, it is trading at an average trading price of $258.91, at the press time.
This surge has come with improving conditions in the crypto market specifically Bitcoin. The world’s largest crypto price is up by almost 60% on a year-to-date (YTD) basis. This surge comes after a major approval of the spot crypto Exchange Traded Fund (ETF). Bitcoin is trading at an average price of $67,397, at the press time.
Lucas Matheson, Coinbase’s country director for Canada, reportedly stated the company’s long three year effort to secure regulatory approval. He highlighted that there is a more accommodating regulatory environment in Canada compared to the US.
It is important to note that Coinbase had recently faced a partial defeat in the lawsuit against the SEC.
