Kraken Is Complying With Tougher Rules In Canada
- As part of its efforts to become a licensed Restricted Dealer in Canada, Kraken has submitted a pre-registration undertaking with the Ontario Securities Commission.
- Canada has strengthened its regulations regulating cryptocurrency exchanges and set a deadline for companies to subscribe to a set of upgraded pre-registration commitments.
- Kraken will make changes to its services in Canada during the next several months.
Kraken said in a news release on Thursday that it has submitted a pre-registration undertaking with the Ontario Securities Commission in order to become a registered Restricted Dealer in Canada.
This initiative indicates Kraken’s commitment to complying with the newly increased investor protection recommendations issued by the Canadian Securities Administrators.
Canada has strengthened its laws regulating cryptocurrency exchanges and set a deadline for companies to subscribe to a set of enhanced pre-registration undertakings, prompting some major firms to depart the country’s industry while others insist they will stay.
The interaction between Canadians and conventional financial service providers presents a once-in-a-lifetime opportunity for the cryptocurrency sector. According to data, close to 15% of Canadians, or around five million people, are underserved by the present banking industry, and another one million have no access to mainstream financial services at all. Individuals with banking access incur high administrative costs and long transaction resolution periods.
Kraken is a digital asset platform that has been serving Canadian customers for over ten years. Kraken offers a personalized trading experience for all levels of Canadian crypto traders, with over 250 staff members resident in Canada, making it one of the major crypto employers in the nation. Kraken has been registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services firm in Canada since 2019.
Kraken’s Chief Operating Officer and incoming CEO, David Ripley, stated:
“Canada as a geography is critical to our mission to empower people with new ways to connect and transact. 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.”
The new regulatory framework unveiled by Canada on February 22 mandates asset segregation and tightens requirements for re-hypothecation, margin trading, and some dealings using proprietary tokens or stablecoins.
Kraken will make modifications to its services in Canada over the coming months and will inform customers of any changes that would disrupt their trading experience.
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