In the words of Mark Greenberg, Kraken’s Managing Director for Canada, “We want both existing and prospective clients to know Kraken remains committed to Canada. As we forge this new regulatory path, we’ll continue engaging with our local regulators to enhance understanding of crypto’s economic benefits and transformative potential.”
Crypto exchange Kraken filed a pre-registration undertaking with the Ontario Securities Commission (OSC) to continue offering services to its Canadian clients.
Oh, Canada! We’ve got news
— Kraken Exchange (@krakenfx) March 30, 2023
Kraken users will be happy to learn that we have taken the necessary steps required by regulators in order to continue operating in Canada, and to continue our mission of driving crypto adoption worldwide.
More info https://t.co/v42rR2STPG pic.twitter.com/NEvNGMnyGL
In its press release, Kraken stressed that the firm has over 250 employees based in Canada, making it one of the largest crypto employers in the nation. In 2019, Kraken received authorization from FINTRAC to operate as a money service business in Canada.
Kraken noted that it will modify the services offered to its Canadian users to comply with the new regulations. The exchange’s incoming CEO Dave Ripley added,
“Canada as a geography is critical to our mission to empower people with new ways to connect and transact.”
Similarly, Coinbase is reportedly negotiating with regulators to obtain the necessary license to remain operational in Canada.
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In February, the Canadian Securities Administrators (CSA) released a new set of guidelines for crypto platforms operating in the nation. The updated rules mandate crypto trading platforms to sign a pre-registration undertaking with Canadian regulators.
The CSA said under the new rules, crypto platforms must separate clients’ funds from company assets. Firms that sign the pre-registration paperwork will be prohibited from offering stablecoin trading facilities.
In light of the changes, many crypto exchanges, including OKX and Deribit, announced that they will exit the Canadian market.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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