Coinbase Wants to Become Canada’s All-in-One Exchange

Coinbase wants to offer derivatives, DeFi, and tokenized assets in Canada too, but says it first needs a permanent framework to do that. The debate also touches on stablecoins and the role of provincial regulators.

Key Takeaways

• Coinbase wants to expand in Canada into a broader crypto platform with derivatives, DeFi services, and tokenized assets.
• According to executive Eric Richmond, that depends on permanent rules, since Canada’s current setup still relies heavily on temporary exemptions.
• Canada is still behind the US on tokenized securities, custody, and capital treatment, while provincial regulators make it harder to launch new products.

Coinbase wants to turn its Canadian business into a broader crypto and financial platform, but new Canadian executive Eric Richmond says that only makes sense if the rules move beyond temporary carveouts. The company is aiming to bring derivatives, decentralized finance services, and tokenized assets to Canadian users, but says a clearer and more permanent framework has to come first.

More Than Just Spot Trading

Speaking in Toronto, Richmond described an ambition that goes well beyond a standard crypto exchange. In his view, Coinbase wants to become a one-stop platform where customers can access several financial products in one place, all built on blockchain infrastructure and available 24/7. For Canadian users, that would mean getting access to products that are already available in the US.

Richmond is not new to this part of the market. Before joining Coinbase, he worked in Canada’s digital asset industry at firms including Shakepay and Coinsquare, so he knows the local landscape well. That background is also why he argues the next stage of crypto no longer fits neatly inside a system that still depends mostly on staff notices and company-specific exemptions.

Rules Are Lagging Behind Products

Canada was early in approving spot crypto ETFs and in setting up a registration framework for crypto trading platforms. Even so, Richmond says much of that progress has rested on temporary exemptions rather than laws written specifically for crypto. That approach worked when the market was simpler, but it becomes a problem as firms try to launch more advanced products.

The difference with the US is hard to miss. In a recent analysis by Norton Rose Fulbright, the firm said Canada is still mostly in a consultation phase, while US regulators are further ahead on guidance for tokenized securities, custody, and capital treatment. Richmond says he sees that gap in real life, with Canadian customers waiting on products that US users already have access to, such as certain stablecoin loans or futures access for selected customers.

Canada’s market structure adds another layer of complexity. Crypto trading platforms have to deal with several provincial regulators and agencies, and the rules around registration and oversight have become stricter over the past few years. Since the CSA no longer accepts new pre-registration undertakings, platforms now have to take a more direct route to full registration and CIRO membership. That makes product launches more formal, but also less flexible.

Why This Matters for Europe

Canada’s debate shows why a permanent regulatory framework matters once crypto moves beyond spot trading. For European readers, that is relevant because the same tension shows up around tokenization, stablecoins, and DeFi: innovation can move faster than the law, but without clear rules, access and rollout stay limited. Canada is a good example of regulators trying to balance room for new products with more certainty for market participants.

Richmond says the next logical step is to codify existing practice in a national instrument so provincial regulators are more aligned. In his view, the recent Stablecoin Act in Canada fits into that direction. The law was passed earlier this year and creates a federal base for fiat-backed stablecoins under the Bank of Canada’s oversight, although the details are still being worked out. For now, the mostly interim framework is still in place, and that is the system Coinbase wants to use for its next wave of products.