Coinbase, the crypto exchange giant, says that it prefers Canada because the rules are clear and the companies can interact with regulators. This is in contrast to the U.S., which lacks clarity and enforcement of the law.

There’s no doubt that Coinbase and the Securities and Exchange Commission are at odds. The SEC has informed the exchange of an impending enforcement action due to its violation of securities laws. Many companies and investors are also scared by the recent U.S. crackdown on regulatory issues. They have already started looking for other jurisdictions.

Read more: The Banking Crisis in the U.S. is likely to push crypto firms offshore

Canada also puts pressure on the crypto industry with its Pre-Registration Undertaking regime (PRU), which has seen several major players leave the country. Most notably Binance the largest exchange group based on volume.

Nana Murugesan, VP International and Business Development at Coinbase said he preferred Canada’s PRU.

Murugesan told CoinDesk that regulators act in two ways: by engaging and by enforcing. The latter part can be difficult because you do not know the rules. The Canadian regulator is definitely the first, and regulation by engagement is what we love.

Coinbase Canada Country director Lucas Matheson said that the company, which has invested heavily in the country, and is regulated by the Ontario Securities Commission, has had 200 engineers in the country since years.

Matheson stated that Coinbase’s plan is to offer a seamless experience from fiat to cryptocurrency for Canadian customers. This will be achieved by introducing new payment rails. He said that “within the next few month, we will add Interac payments rails to our Platform.”

Interac, Canada’s electronic payment system network, links local financial institutions with individuals and businesses.

Canada is a great opportunity for Coinbase, with regulatory clarity from regulators and Binance.

Murugesan said, “We do not comment on our competition.” “But each company has their own path and I believe the developments in Canada fit our playbook very well,” said Murugesan.

Berenberg: Coinbase initiates at hold, likely to face enforcement action from SEC

Aoyon A. Ashraf is the editor.