Coinbase Executive Urges Canadian Authority to Engage Public in Crypto Rulemaking

As global regulators step up to develop a clear regulatory framework for digital assets, legislators are implementing unique approaches to prevent unfair business practices. One commonly used regulatory approach involves public participation, which improves the proposed rule’s legitimacy and quality.

In an interview with Coinbase at the Collision Conference, director Lucas Matheson complained that the Canadian government had failed to take preliminary rulemaking steps. Matheson observed that public participation in Canada  rulemaking process remains minimal compared to other jurisdictions.

Coinbase Official Complains Canada Fails to Engage Public in Crypto Regulation

She noted that public engagement was lower despite Canada’s collaborative approach to supervising the crypto industry. The executive recognized the remarkable efforts by Canadian regulators in providing clear regulation on digital assets.

The executive observed that despite the efforts to curb the regulatory gaps in the digital world, Canadian political engagements with the public were fewer.

He advised the Canadian authority to consider engaging the public while developing the rules. Matheson vowed to collaborate with lawmakers to develop a strong regulatory framework in Canada.

Citing the regulatory approach in other jurisdictions, the executive noted that legislators worked closely with the public to establish a robust strategic plan incorporating crypto with other advanced technologies to stimulate economic growth.

The director suggested that it was important for the regulators to build trust with the public to foster growth of the crypto sector. Matheson admitted that Canada has embraced stringent rules in crypto assets since its a risky investment.

Coinbase Prefer Canada to the US

In October, the Canadian authority outlined the conditions for trading certain crypto assets, such as stablecoin. The new guidelines allow stablecoin issuers to issue these crypto assets under certain conditions.

The executive noted that the stringent rules in Canada have forced fast-paced crypto firms such as Binance and Bybit to wind down operations due to regulatory pressure. Binance’s departure  in Canada offered its top rival, Coinbase, an opportunity to expand its market presence in the region.

In August, Coinbase vice president and business executive Nana Murugesan admitted that the Canadian stringent measures might not favor the operations of some crypto exchanges. However, Murugesan stated that Canada’s regulatory approach aligns with the Coinbase playbook.

The executive affirmed that, unlike other jurisdictions with stringent crypto rules, Coinbase prefers Canada to the United States.

Murugesan stated that Canada has developed clear digital asset rules, enabling Coinbase to be compliant. She noted that Canada has ensured that the crypto sector is safe and secure through its pre-registration undertaking (PRU) requirement.

The PRU has forced non compliant crypto firms to fleed the Canadian market. Besides imposing the PRU Murugesan observed that the Canadian regulatory approach was more engaging compared to the enforcement action in the United States.

Coinbase has operated as a regulated crypto exchange in Canada for nearly two years. To uphold compliance the American crypto exchange has prioritized completing the regulatory licensing requirement to ensure Coinbase product offering conform with the law.

Coinbase Expand Operation in Canada

In April the Canadian authority approved Coinbase restricted dealer license which demonstrated the company commitment to comply with the law. Coinbase has been working to comply with the Canadian authority to shift its operation to the region.

Following the approval of the Coinbase restricted dealer permit and the PRU the crypto exchange invested in establishing a tech hub in Canada. Coinbase tech hub offered over 200 employment opportunities to the Canadian residents.