Since the dawn of Bitcoin time, Canadians have been expecting for this platform to enter the market.
The company is one of the top-rated exchanges worldwide, raising over $106 million in multiple venture rounds. Its services are available in more than 20 countries, including Europe and North America.
Does Coinbase Work in Canada?
The company’s CEO, Brian Armstrong, noted earlier that the company was focused on further extension, with a global coverage being the end goal. Armstrong made this statement in early 2015 when the company was in the middle of the Series C funding round.
Consequently, using Coinbase in Canada is now real. With this exchange, local residents can effortlessly buy, sell, trade, or deposit multiple cryptocurrencies and Bitcoin, in particular.
During an interview, Armstrong clarified the details regarding the process of launching Coinbase in Canada. Naturally, operating in economically advanced countries is less problematic. However, the company vigorously continues to pursue its efforts to start delivering services in developing countries. Nevertheless, economically developed countries are not only tech-savvy but also have a high literacy rate, making it easier for the exchange to successfully enter their markets.
The company’s CEO also stated that while it was important for the company to extend, the number of potential and actual clients was still a critical factor. In a nutshell, Coinbase Canada was meant to happen. Apart from the immense population, most of the potential traders reside in Canada. Therefore, it was only a matter of time before Coinbase for Canadians took place.
The exchange also pointed out that their legal consultants denied that the company was in any manner engaged in regulated business activity in North America. The exchange is focused on helping countries adopt the Bitcoin currency as well as to adapt to the changing market environment. Therefore, the company’s services are currently available throughout Canada.
Remarkably, their CAD to BTC exchange is currently available only to Canadian citizens in the individual order books. In other words, US residing traders will not have access to this type of exchange through their local accounts.
Naturally, it is more beneficial for the company to have numerous currency pair options. This decision, however, was made with regard to Canadian laws and regulations.
During the launch, the company disabled conversion fees for its users for several days. However, the trading fees remained unchanged.
Winning Over the Wall Street
The company’s CEO also mentioned the rising competition in the US exchange industry. Since more and more Bitcoin exchanges emerge on the market, such highly capitalized rival companies as itBit and Gemini also launched their exchanges in the US.
Even though these companies have attracted the greatest share of media attention, Armstrong believes that Coinbase is optimally positioned to earn investment locally. Since the company’s co-founder Fred Ehrsam has experience working at Goldman Sachs, the Coinbase representatives strongly believe that they will easily gain the support of Wall Street should they consider adopting Bitcoin. In other words, the company is literally a shoo-in in the trading world of Wall Street.
The exchange is available at around 30 US states at the moment, including Washington, D.C., and the territory of Puerto Rico. Naturally, the company is licensed in every state in accordance with its jurisdiction. In contrast, the competitor exchange itBit claims that they provide their service in every US state.
Even though Armstrong spoke highly of itBit, he was not feeling so positive about their efforts to file for a banking charter in the state of New York. The CEO even implied that the company did not acquire a credible track record proving the quality of their service delivery.
What About the Business Model?
According to Armstrong, the start-up company can potentially add other financial products to its portfolio shortly.
The company’s trading instruments are considered to be not only the main revenue-generating tool but also the means to reshape and improve their services, making them even more innovative, cost-efficient, and customer-centric.
Nevertheless, the company’s CEO admitted that numerous digital wallets and Bitcoin exchanges encounter difficulties while trying to raise revenue. However, he feels that Coinbase can successfully monetize through its trading service, considering that the company is believed to be trustworthy and reliable.
Armstrong himself refers to Coinbase as Apple of the exchange industry, implying that its business model allows the company to stay profitable and provide the developer platform free of charge.
Currently, the company is developing a new open and effective payment network that would be available globally. As for launching Coinbase for Canada, it makes the company one step closer to that ultimate goal.