Coinbase is looking to transform its Canadian business from a cryptocurrency trading platform into a comprehensive digital finance hub, but the company says regulatory modernization will be essential before that vision can become reality.
Rather than offering only crypto trading, Coinbase wants to build what it calls an “Everything Exchange”—a single platform where users can access cryptocurrencies, tokenized stocks, derivatives, decentralized finance (DeFi), stablecoins, and other financial services powered by blockchain technology.
Speaking at the Blockchain Futurist Conference in Toronto, Coinbase Canada CEO Eric Richmond said the company’s long-term ambition is to create a frictionless financial ecosystem operating around the clock. However, he stressed that Canada’s regulatory framework needs to evolve beyond temporary exemptions if it wants to keep pace with innovation.
Coinbase Eyes Canada’s ‘Everything Exchange’
Beyond Crypto Trading
Richmond said Coinbase’s goal is to become far more than a digital asset exchange.
“We want to have all your financial services in one place,” he said, describing the company’s vision as an “Everything Exchange” built on blockchain infrastructure that enables seamless, 24/7 access to financial products.
The strategy reflects Coinbase’s broader expansion in the United States, where the company has already moved beyond cryptocurrencies by introducing stock and ETF trading for eligible users, prediction markets through Kalshi, and plans for tokenized equities.
Canada is expected to be one of Coinbase’s next major growth markets, but Richmond says regulatory clarity will determine how quickly these products become available.
Canada’s Crypto Rules Need an Upgrade
Canada has long been considered one of the world’s more crypto-friendly jurisdictions. It was among the first countries to approve spot Bitcoin and Ethereum exchange-traded funds and established an early registration framework for crypto trading platforms.
Coinbase itself became the first international crypto exchange registered in Canada in April 2024.
However, Richmond believes much of Canada’s regulatory progress has relied on staff guidance, exemptive relief, and company-specific approvals rather than legislation specifically designed for digital assets.
That flexible approach worked well during crypto’s early years, allowing regulators to respond quickly to emerging technologies. But as companies seek to launch more sophisticated products—including tokenized securities, DeFi services, derivatives, and blockchain-based payments—the current system is becoming increasingly difficult to navigate.
According to Richmond, Canada now needs a permanent legislative framework tailored to digital assets instead of relying primarily on exemptions.
Regulatory Differences Slow Product Launches
The current regulatory environment has created noticeable differences between the products available to Coinbase customers in Canada and those in the United States.
For example, Coinbase One subscribers in the U.S. can access a stablecoin lending program that offers yields of roughly 7% APY. Canadian users, meanwhile, earn up to 4.5% APY for holding USDC because the higher-yield lending product has not yet been approved locally.
Coinbase is also preparing to expand access to crypto futures through Coinbase Financial Markets, its CFTC-regulated derivatives platform. While Canadian regulators have granted exemptions allowing certain permitted investors to trade these products, broader retail access would require additional approvals.
Richmond emphasized that these delays are not necessarily the result of regulators moving too slowly. Instead, they reflect structural differences between Canadian and U.S. regulatory systems.
“My focus is to bring the products that you see in the U.S. to Canadians,” he said.
Tokenization Is the Next Frontier
One of Coinbase’s biggest priorities is expanding tokenized financial assets.
Tokenization converts traditional securities such as stocks into blockchain-based digital assets that can settle almost instantly, trade around the clock, and integrate with decentralized financial applications.
Coinbase plans to introduce tokenized stocks to international markets as part of its broader Everything Exchange strategy.
While both Canada and the United States generally regulate tokenized assets under existing securities laws, the two countries are beginning to diverge.
According to legal analysis from Norton Rose Fulbright, U.S. regulators have issued more detailed guidance covering tokenized securities, custody requirements, collateral, and capital treatment. Canadian regulators, by comparison, remain largely in a consultative phase, relying on interim guidance and pilot exemptions.
The report suggests that the more mature U.S. framework could accelerate adoption and allow American firms to shape global standards for tokenized finance.
Stablecoins Could Unlock the Next Phase
Richmond also pointed to Canada’s recently enacted Stablecoin Act as an encouraging step toward clearer regulation.
The legislation follows the U.S. GENIUS Act, which established a federal framework for payment stablecoins. Since Canada’s law was introduced, Tetra Trust—backed by Wealthsimple, Shopify, and National Bank of Canada—has launched CADD, the country’s first regulated Canadian-dollar stablecoin issued by a regulated financial institution.
Richmond believes clearer stablecoin regulations will eventually allow Coinbase to expand into blockchain-based payments, lending, and additional financial services tailored to Canadian customers.
A Call for National Rules
Richmond believes Canada should go a step further by consolidating today’s patchwork of provincial guidance into a harmonized National Instrument—a common securities framework adopted across all provinces and territories.
Such a framework would replace much of today’s exemption-based system with permanent, standardized rules that provide greater certainty for both companies and investors.
A harmonized approach could also accelerate approvals for emerging products involving tokenized securities, stablecoins, derivatives, and decentralized finance while ensuring consistent regulation across the country.
Looking Ahead
Coinbase’s Canadian strategy reflects a broader transformation taking place across the digital asset industry. Crypto exchanges are increasingly evolving into full-service financial platforms that combine investing, payments, lending, tokenization, and blockchain infrastructure within a single application.
Canada has already demonstrated that regulated crypto markets can operate successfully. The next challenge is whether policymakers can modernize the country’s regulatory framework quickly enough to support the industry’s next phase.
If Canada moves beyond temporary exemptions and adopts permanent, harmonized legislation, Coinbase believes Canadians could soon gain access to many of the blockchain-powered financial products already becoming available in the United States. Otherwise, the company’s vision of becoming Canada’s “Everything Exchange” may take considerably longer to reach the market.
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Source: https://nftplazas.com/coinbase-canada-everything-exchange-crypto-regulation/
