Coinbase obtains a limited distributor license in Canada.

Update April 4, 14:00UTC: This article has been updated to include quotes from Coinbase.

The United States-based cryptocurrency exchange Coinbase has had its distributor licenses banned in Canada, doubling down on international expansion amid domestic regulatory attacks.

Coinbase has received a new license in Canada, registering as a prohibited dealer under the Canadian Securities Administrators (CSA) in Ontario, the firm announced on April 3.

The new license officially establishes Coinbase as a cryptocurrency company operating legally in Canada. “The registration is the culmination of months of hard work that has proven our commitment to regulatory and operational excellence since March 2023, when we signed an enhanced pre-registration agreement,” the announcement said.

According to CSA national registration information, there are two Coinbase-related entities registered in Canada, including Coinbase Incorporated, which is registered as a prohibited distributor. Another, Coinbase Canada, is registered as an international distributor.

According to the CSA, a limited traders registration is “a special trading registration that serves firms that do not fit into any other category. Regulators set individual requirements for companies with this rating.

According to legal information source JD Supra, international traders are not allowed to trade equity or debt securities of Canadian issuers other than government issuers with Canadian clients.

Coinbase's new license in Canada isn't the first big step for a crypto exchange in the country. The exchange officially launched in Canada in August 2023 and subsequently expanded its services to Canadians in partnership with local financial services firm People's Trust Company.

Related: Coinbase Wallet Victory Over SEC Allegations Is ‘Huge Win' For DeFi

Starting in April 2024, Coinbase will have a technology center in Canada with about 200 full-time local employees, the company said in its latest announcement.

Some rival exchanges, such as Kraken, have already taken steps to accept dealer registration in Canada. Kraken has filed a pre-registration with the Ontario Securities Commission in Canada in March 2023 to seek limited distributor status.

The move is aimed at helping Kraken comply with the CSA's new guidelines for crypto asset trading platforms, which come out in February 2023.

According to the new requirements, local crypto trading platforms must adhere to strict security standards, usage restrictions and a ban on trading statscoins without written consent from the CSA.

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