Coinbase calls for Canadian crypto reforms just as a hack threatens up to $400M in losses. Industry leaders demand transparency and stronger safeguards.
Coinbase Canada CEO Calls for Policy Shift as Hack Unfolds
Speaking at the Consensus 2025 summit, Lucas Matheson, CEO of Coinbase Canada, made a forceful pitch for Canadian lawmakers to embrace cryptocurrency—just hours after the company disclosed a major security breach. The cyberattack, which may cost Coinbase between $180 million and $400 million USD, threatens to overshadow the company’s regulatory push and impending entry into the S&P 500 index, a first for any crypto firm.
Matheson addressed a packed audience in a conversation with BetaKit CEO Siri Agrell, asserting that Canada risks falling behind global leaders like the United States unless it urgently rethinks its crypto policies. “There are very few compelling reasons to be anti-crypto as a politician today,” Matheson said.
A Costly Breach Hits at a Critical Time
On May 11, Coinbase received a blackmail threat from an anonymous actor claiming to have access to sensitive customer and internal data. The attacker demanded a $20 million ransom. The company refused to pay and instead opted for public disclosure.
In a regulatory filing, Coinbase projected recovery expenses that could reach $400 million USD, stemming from compromised customer service operations and stolen data from a small percentage of active users. While passwords and funds were reportedly untouched, names, emails, and addresses were accessed.
According to Coinbase, the breach stemmed from overseas agents who were bribed into leaking customer information. The company has since fired the involved insiders and launched a $20 million bounty for information leading to arrests.
Industry Reactions and Legal Officer Speaks Out
Though Matheson didn’t directly mention the hack on stage, Coinbase Chief Legal Officer Paul Grewal addressed it during a later fireside session. “It’s critically important that we operate collectively across industries to resist these global threats,” said Grewal. He emphasized Coinbase’s refusal to bow to blackmail as a stance on principle.
Grewal framed the breach not only as a challenge, but also as an opportunity for the broader industry to unite around transparency and coordinated defense strategies.
Regulatory Demands for a Crypto-Ready Canada
Matheson laid out a six-point policy wishlist, calling on Ottawa to:
- Launch a federal crypto task force
- Establish a national Bitcoin reserve
- Remove securities law barriers for stablecoins
- Enable large-scale crypto mining projects
- Allow banks to store digital assets
- Include crypto in open banking reforms
He also urged the government to stop financial institutions from denying basic services to crypto companies.
These priorities echo proposals in a white paper from the Canadian Blockchain Consortium, a group representing the wider Web3 ecosystem, including Dapper Labs and WonderFi.
Trust, Transparency, and Political Skepticism
Jade Alberts, vice-president of the Canadian Blockchain Consortium, told BetaKit that Coinbase’s openness about the breach helps build trust. “Transparency is essential in a digital asset community,” Alberts said.
Still, despite Coinbase’s advocacy, many in the industry remain skeptical. With newly elected Prime Minister Mark Carney facing larger geopolitical challenges like the Canada-US trade war, crypto reform may not top the legislative agenda. Shakepay’s Carlo Campisi expressed doubts, saying, “There’s not a lot of proof to be overly optimistic.”
Market Response and SEC Scrutiny
Following news of the hack and an ongoing investigation by the U.S. Securities and Exchange Commission (SEC), Coinbase shares fell over seven percent on the Nasdaq. While the SEC recently dropped one case against Coinbase, questions remain over its financial disclosures and user count.
As the crypto world eyes regulatory clarity and market resilience, Coinbase’s dual battle—for trust and reform—has just intensified.
Stay tuned to Maple News Wire for the latest updates.
