Coinbase Canada CEO Pushes for Codified Crypto Rules to Replace Regulatory Patchwork
AI-generated image · Bay Street Wire
Eric Richmond argues that moving away from fragmented exemption orders toward a comprehensive framework would benefit both regulators and established firms.
Coinbase Canada CEO Eric Richmond is advocating for a shift in how the country governs digital assets, arguing, as BetaKit first reported, that Canada needs "all-encompassing acts" to codify existing rules. Speaking with BetaKit, Richmond noted that the current system relies on a fragmented patchwork of territorial and provincial securities regulators who typically govern firms through exemption orders and staff notices.
According to Richmond, this fragmented approach creates inefficiencies for both the government and the private sector. He told BetaKit that exemption orders make compliance prohibitively expensive for entrepreneurs and place a heavy burden on regulators, who must repeat the same processes for every individual platform. By looking to jurisdictions such as Singapore and the European Union for inspiration, Richmond believes Canada can establish clear "rules of the road" necessary to retain businesses within the country.
**Opinion:** While Richmond frames this as a move toward efficiency, the push for codified, comprehensive regulation effectively favors institutional giants. By replacing flexible, case-by-case exemption orders with a rigid, high-barrier regulatory framework, Coinbase—which already possesses the capital and legal infrastructure to comply—can secure institutional legitimacy that smaller domestic competitors may struggle to afford.
Coinbase is already positioning itself as a regulatory leader in the region. BetaKit reports that in 2024, the company became the first international crypto exchange to obtain a restricted dealer licence from the Canadian Securities Administrators. Furthermore, Richmond stated that Coinbase Canada has applied for regulation by the Canadian Investment Regulatory Organization, a process the firm expects to finish by early next year.
This regulatory push coincides with Coinbase's efforts to expand its Canadian footprint. The company currently employs 300 people in Canada and has made 18 investments. Richmond, who joined the firm in June, intends to introduce global products to the Canadian market, including blockchain-based lending and borrowing, prediction markets, derivatives, traditional equities, and a Visa debit card. His goal, as told to BetaKit, is to create an "everything exchange" for managing various financial assets.
Richmond is also eyeing the integration of stablecoins into Canada's traditional payment infrastructure, describing it as "just a matter of time." While industry leaders at the Blockchain Futurist Conference argued that a lack of clarity regarding stablecoins is hindering domestic innovation, Richmond expressed hope that the upcoming Stablecoin Act would provide guidance on securities regulators and bank issuers, and allow for the payment of rewards on stablecoins.
Coinbase Canada is pursuing this strategy as it competes against traditional trading platforms—including Robinhood, which entered Canada after purchasing WonderFi—and smaller domestic players like Netcoins. Richmond, a former securities lawyer who previously held leadership roles at Shakepay, Coinsquare, and Tetra Trust, stated that he intends to help Coinbase secure further regulatory firsts, specifically in the area of crypto derivatives.