As Canada gears up for a crucial election scheduled for April 28, 2025, Lucas Matheson, the Chief Executive Officer of Coinbase Canada, is setting the stage for the cryptocurrency exchange to make significant strides in a market he sees as ready for blockchain development. In a discussion with him, we explored Coinbase’s growing influence in Canada, the distinctive aspects of the Canadian cryptocurrency landscape, and his aspirations for the future of crypto in the nation. Our dialogue highlighted not just Coinbase’s strategic goals, but also Matheson’s deep commitment to promoting blockchain integration in his homeland.
Having transitioned from traditional finance to the tech startup world and subsequently to Coinbase after spending nearly six years at Shopify, Matheson, a Canadian entrepreneur, is advocating for the government to expedite the incorporation of cryptocurrency into the economy.
This conversation has been summarized and edited for clarity.
Q: Your background spans traditional finance, Shopify, and now cryptocurrency. Was there a defining moment that convinced you that digital assets would redefine finance, or was it a gradual realization?
Lucas: As a Canadian entrepreneur, I’ve spent a considerable portion of my career navigating finance and business. My journey began in finance, where I focused mainly on mergers and acquisitions, before launching a tech company with a close friend in Silicon Valley, which eventually led me to Coinbase. I’ve been using Coinbase for over a decade.
After selling my tech company, I joined Shopify for nearly six years, contributing to their growth in operational and financial capacities. At Coinbase, I oversee a team that’s developing a platform for Canadians to diversify into the digital economy.
Q: How long has Coinbase operated in Canada, and what regulatory achievements have you reached?
Lucas: Coinbase has been operating in Canada for nearly four years. We have also been working on our registration here for several years and are now recognized as a restricted dealer under the CSA. We’re proud to be the first international exchange fully registered in Canada.
We’re fortunate to navigate a regulatory environment that enables us to grow our business compliantly. Currently, we are pursuing our IIROC registration as a full dealer, which will broaden the range of products and services available to Canadians.
Q: Ethereum originated in Canada, yet its ecosystem predominantly flourished elsewhere. Isn’t it ironic that Canadian institutions need convincing to adopt a technology with Canadian roots?
Lucas: Coinbase is focused on obtaining regulatory clarity worldwide, aiming for markets with stable operating rules. Canada stands out as a market that is open to establishing clear regulations for cryptocurrency exchanges like Coinbase.
Moreover, Canada is recognized for its high level of cryptocurrency literacy, ranking as the third most aware country among our international markets. This strong understanding presents an opportunity for crypto to benefit our financial systems, particularly since Ethereum was founded here. We have solid roots in technology and a wealth of top universities specializing in computing science and blockchain technology, which helps educate our students about these opportunities.
Q: It’s intriguing that Canada ranks high in crypto awareness. How does that correlate with actual adoption rates?
Lucas: Our global surveys assess awareness of different cryptocurrencies and their applications. In Canada, surveys indicate that more than 30% of Canadians are expected to own digital assets by the year’s end, signaling robust adoption and asset diversification. Additionally, Canada was the first country to introduce crypto-related ETFs, further enhancing awareness of opportunities for Canadians to invest in crypto through traditional avenues.
Q: What does the demographic landscape of Coinbase’s Canadian users look like?
Lucas: Our user base in Canada is quite diverse. We see a wide range of demographics, from young students to immigrants remitting money. Many users are actively building and diversifying their portfolios, aiming for long-term growth and wealth preservation. We’re also seeing an increasing number of institutional investors in Canada beginning to include cryptocurrency in their asset diversification strategies.
Q: With the Canadian election looming, what policy shifts would you like to see from the incoming government?
Lucas: We have proposed several key changes for the new administration to contemplate:
- Establish a government task force to create a national cryptocurrency strategy.
- Explore the idea of a Bitcoin strategic reserve.
- Implement federal regulations on stablecoins as a recognized payment instrument.
- Introduce a market structure bill similar to the one in the US, which would clarify the definition of crypto assets for the public, institutions, and builders alike.
- Facilitate banking relationships for cryptocurrency trading platforms with Canada’s major banks.
Currently, our larger banks, which control a significant portion of Canada’s financial resources, do not support cryptocurrency trading platforms. We are eager to encourage the government to engage our financial institutions in the digital economy.
Q: You’ve mentioned the ‘Stand with Crypto’ initiative. How is the industry uniting to influence policy in Canada?
Lucas: ‘Stand with Crypto’ is an advocacy group pushing for clear regulatory frameworks globally, and we recently launched this initiative in Canada alongside several partners. Many cryptocurrency trading entities are joining us to advocate for reform.
This initiative provides a platform for elected officials to grasp the potential benefits of cryptocurrency, allowing us to prioritize this issue amid other economic challenges. We also have two prominent industry associations—the Canadian Blockchain Consortium and the Canadian Web3 Council—that help consolidate perspectives and align on regulatory improvements.
Q: Decentralized exchanges (DEXs) are starting to rival centralized platforms like Coinbase in the US. How do you view this trend impacting your operations in Canada?
Lucas: Decentralized finance will play a vital role in our future financial ecosystem. It embodies the technology’s foundational goal—decentralizing financial transactions in a compliant and trustworthy manner.
While some investors may choose to engage through decentralization, centralized exchanges are invaluable for enabling compliant transactions in the digital economy. These platforms provide assurance to governments and institutions that risks are being managed appropriately, thereby fostering a good faith environment for all users.
Q: If you could communicate a few key points to the upcoming government, what would they be?
Lucas: My message would be that the world is rapidly adopting cryptocurrency and integrating it into their economies. It’s imperative for Canada to follow suit by crafting a national strategy for incorporating crypto, while educating citizens on why moving towards a digital future is crucial.
Q: There seems to be a nationalistic dimension to your advocacy. Do you believe Canada can emerge as a global leader in the cryptocurrency sphere?
Lucas: Absolutely, Canada has the potential to be a vanguard in the cryptocurrency landscape. We can effectively embrace this technology to drive economic growth and rejuvenation.
We are entering a period where it’s vital for governments to rethink their structure, taxation, revenue generation, and spending. The current cycle demands that governments do more with less, akin to the innovative approaches entrepreneurs adopt daily through technology. Globally, governments are beginning to recognize the opportunity to enhance efficiency and improve public services through technological advancements, and Canada can lead the way in this transformation.