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, while larger rival Binance 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. “We remain as committed as ever to the Canadian market as a core component of our international roadmap,” Elliott Suthers, Coinbase’s communications director, said in a statement to CoinDesk.
Meanwhile, a person with knowledge of the matter, who asked to remain anonymous, said Binance will probably pull out. A spokesman for Binance – whose CEO, Changpeng “CZ” Zhao, is a Canadian citizen – said the exchange “has not made definitive plans yet.”
Canada set a March 24 deadline for firms to commit to a tightening of rules around crypto in the country, which saw a high-profile exchange blow-up several years ago when QuadrigaCX went under. Earlier this month, OKEx announced its departure from Canada.
Crypto.com also plans to remain in Canada, a 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.