The 'Everything Exchange' Fantasy: Richmond's Quest for Canadian Clarity

OPINION: Let's be clear about the game being played here. Eric Richmond is selling a fantasy where 'clearer rules' are a benevolent gift to the industry. In reality, 'codified' regulation often just means a more efficient way for the state to choke the life out of the sector. When a giant like Coinbase asks for a harmonized framework, they aren't just asking for clarity—they're asking for a playbook that they, with their massive legal budgets, can execute more easily than the scrappy entrepreneurs currently drowning in exemption orders.

As BetaKit first reported, Coinbase Canada CEO and country director Eric Richmond is advocating for "all-encompassing acts" to replace the current fragmented system of provincial and territorial securities regulators. Richmond, who previously held roles at Coinsquare, Shakepay, and Tetra Trust, argues that reliance on staff notices and exemption orders makes compliance prohibitively expensive for entrepreneurs.

Richmond is looking toward Singapore and the European Union as models for codification. This push comes as Coinbase Canada attempts to expand; BetaKit reports the company employs 300 people in Canada and has made 18 investments. The firm aims to be an "everything exchange," bringing products like blockchain-based lending, prediction markets, and traditional equities to the market.

Coinbase has already hit regulatory milestones, becoming the first international crypto exchange to obtain a restricted dealer licence from the Canadian Securities Administrators in 2024. Richmond also noted the firm has applied for regulation by the Canadian Investment Regulatory Organization, a process expected to wrap up by early next year.