Cryptocurrency trading platform Coinbase has received a limited authorization to broker in Canada. The company debuted in the local market back in August 2023.
As required by the regulatory body, the limited brokerage authorization gives the company official rights to operate, albeit with some modifications. The conditions vary on a case-by-case basis, as organizations holding such a permit do not fall under the generally accepted classification.
According to official records, Coinbase has two legal entities in Canada - Coinbase Canada and Coinbase. It is noteworthy that the first of them has the status of a global broker.
Moreover, they are subject to certain restrictions. In particular, global brokers are prohibited from participating in the trading of stocks and bonds of Canadian issuers.
"This authorization is the culmination of an extensive effort that began in March 2023, when we entered into an enhanced pre-registration agreement that demonstrates our commitment to compliance and operational excellence,"the exchange said in a press release.
The company emphasized the importance of regulating centralized cryptocurrency service providers to ensure customer confidence and drive innovation in the industry.
In March 2023, Canada significantly increased oversight of cryptocurrency companies. Exchanges were given a one-month deadline to complete their initial registration.
As a result, some organizations decided to leave the market, including such well-known names as #Binance and #Bitstamp.
