The post Crypto Exchange Kraken Takes a Stand as It Promises to Meet Canada’s Stricter Regulations appeared first on Coinpedia Fintech News

As the cryptocurrency market continues to grow in popularity, regulators around the world are beginning to take notice. Many countries have implemented stricter regulations for crypto firms in order to protect consumers and prevent money laundering and other illegal activities. In response, several crypto firms have pledged to follow these tough regulations in order to stay in the market. Kraken, a top cryptocurrency exchange, has recently promised the Canadian crypto community to abide by the country’s crypto regulations to cater to its residents.

Kraken Files a Pre-Registration

Kraken, a cryptocurrency exchange based in the United States, has decided to stay operational in Canada and will adhere to the stricter regulations mandated by the country’s financial regulator, the Canadian Securities Administrators (CSA).

Kraken has revealed that it submitted a pre-registration undertaking to the Ontario Securities Commission in its efforts to become a registered Restricted Dealer throughout Canada, thereby displaying its dedication to adhering to the Canadian Securities Administrators’ updated investor protection directives.

David Ripley, Kraken’s chief operating officer, said:

“Canada as a geography is critical to our mission to empower people with new ways to connect and transact.”

In response to Canada’s tighter regulations on crypto exchanges, a deadline has been set for committing to a series of enhanced pre-registration undertakings (PRUs), leading to the departure of some major players such as OKX, Deribit, and Blockchain.com from the market. However, other firms have decided to remain despite the new regulations.

Kraken Promises to Follow Regulations

Following accusations from the Securities and Exchange Commission (SEC) of selling unregistered securities, cryptocurrency exchange Kraken has reached a settlement and agreed to cease staking activities in February involving retail investors. Kraken has also paid a $30 million fine as part of the agreement.

Kraken’s decision and the SEC’s ruling have sparked dissatisfaction among the cryptocurrency community and received criticism from both investors and politicians. Kraken’s Chief Legal Officer also communicated the exchange’s intentions to implement its ban.

Kraken has been serving Canadian customers for more than a decade and currently has a workforce of more than 250 individuals located in Canada. The exchange has been authorized as a money services business in Canada by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) since 2019.

Mark Greenberg, Kraken’s managing director for Canada, stated,

“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.”

On February 22, Canada introduced a fresh regulatory framework that mandates the segregation of assets held in custody and enforces stricter regulations on re-hypothecation, margin trading, and specific transactions involving proprietary tokens or stablecoins.

In conclusion, Kraken’s commitment to meeting Canada’s tougher regulations for crypto exchanges is a significant step towards improving the credibility and legitimacy of the crypto industry. It is a positive development that will help to protect investors and maintain market stability. With the increasing popularity of cryptocurrencies, it is crucial that industry players work together with regulators to create a safe and secure crypto ecosystem.