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March 30, 2023 - Crypto exchange Kraken has taken a significant step in demonstrating its commitment to regulatory compliance in Canada by filing pre-registration with the Ontario Securities Commission (OSC) as it works towards becoming a registered Restricted Dealer across Canada. This undertaking demonstrates Kraken’s commitment to comply with the Canadian Securities Administrators’ recently enhanced investor protection guidance.
This development comes amid a period of regulatory change for the Canadian cryptocurrency landscape, with some major players, like Coinbase, aiming to maintain their presence, while others, like Binance, are considering exiting the market. The Canadian Securities Administrators (CSA) announced back in December 2022 that it is strengthening its oversight of crypto trading platforms post the collapse of FTX.
Part of the requirements of crypto firms ooperating within Canada, even if based outside of the country, are required to, "comply with expanded terms and conditions that will include, among other things, requirements to hold Canadian clients' assets with an appropriate custodian and segregate these assets from the platform's proprietary business, as well as a prohibition on offering margin or leverage for any Canadian client."
“Custodians will generally be considered qualified if they are regulated by a financial regulator in Canada, the U.S., or a similar jurisdiction with a supervisory regime for conduct and financial regulation.”
“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. “Trading platforms that prioritize compliance and secure trading experiences will have more success advocating for crypto’s economic benefits and transformative potential for crypto traders and investors.”
Kraken is an industry-leading digital asset platform that has served Canadian clients for over 10 years. With over 250 team members based in Canada - making it one of the largest crypto employers in the country - Kraken provides a customizable trading experience for all levels of Canadian crypto traders. Kraken has been registered as a money services business in Canada with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) since 2019.
The platform offers more than 175 digital assets to trade on a global spot market through its mobile app and online trading platform. Kraken clients can take advantage of five CAD trading pairs, transparent fees and tight trading spreads. The platform also offers direct access to Canadian order books ensuring one of the fastest and most seamless crypto trading experiences in Canada today.
Over the coming months, Kraken will be making certain changes to services in Canada and will notify clients prior to any changes that will impact trading experience.
Kraken is one of the world’s longest-standing digital asset platforms. Globally, Kraken’s client base trades more than 200 digital assets and 6 different fiat currencies, including GBP, EUR, USD, CAD, CHF and AUD.
Kraken, over 2,000 strong, was founded in 2011, and is used by over 10 million clients worldwide with round-the-clock online support. As part of Kraken’s high bar for transparency and earning its clients’ trust, it was the first company to conduct Proof of Reserves audits.
Kraken is backed by investors including Tribe Capital, SkyBridge, Hummingbird Ventures, Blockchain Capital, Digital Currency Group, among others.
