Crypto Exchange Kraken Commits to Tougher Rules Required by Canada
TL;DR U.S.-based cryptocurrency exchange Kraken is remaining in Canada and complying with the country’s financial regulator, the Canadian Securities Administrators (CSA). The exchange has filed a pre-registration undertaking with the Ontario Securities Commission as it works towards becoming a registered Restricted Dealer across Canada. Kraken has served Canadian clients for over 10 years, and has over 250 team members based in Canada.
U.S.-based cryptocurrency exchange Kraken is remaining in Canada and complying with tougher rules set out by the country’s financial regulator, the Canadian Securities Administrators (CSA).
Kraken has filed a pre-registration undertaking with the Ontario Securities Commission as it works towards becoming a registered Restricted Dealer across Canada, the company said in a press release on Thursday.
Canada has tightened its rules governing crypto exchanges and set a deadline to commit to a set of enhanced pre-registration undertakings (PRU), causing some big players exit the country's market – OKX, Deribit and Blockchain.com among them – while others say they will remain.
Kraken has served Canadian clients for over 10 years, and has over 250 team members based in Canada. The exchange had been registered as a money services business in Canada with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) since 2019.
“Canada as a geography is critical to our mission to empower people with new ways to connect and transact,” said David Ripley, Kraken’s chief operating officer and incoming CEO, in a statement.
Canada’s new regulatory framework, announced Feb. 22, requires the segregation of assets held in custody and tightens rules for re-hypothecation, margin trading and certain trades involving proprietary tokens or stablecoins.