U.S.-based cryptocurrency exchange Kraken will continue operating 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 exchange 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.
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, the exchange said in the release.
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