Crypto exchange Kraken has announced plans to comply with Canada’s new consumer protection rules for crypto traders.
Since the Canadian Securities Administrators (CSA) announced new consumer protection rules for Canadian crypto traders, there has been speculation that crypto firms will leave. The regulations came into force in February 2023, with some crypto exchanges, like OKX, announcing their departure.
Kraken, a major crypto exchange with deep ties to Canada, has reaffirmed its commitment to its customers. On March 30th, 2022, the company announced filing for pre-registration under the new rules. Kraken had been actively operating in Canada for ten years.
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In Canada, the CSA is a national umbrella body for securities regulators. Since no federal agency exists, registering with one CSA member gives a green light to operate in all other provinces. In its statement, Kraken said it would continue working hand in hand with regulators in Canada.
A restricted dealer license means that Kraken will be considered a special type of firm that does not fit into other regulated categories by the CSA. Under this license, firms will have tailor-made rules for them on a case-by-case basis.
Kraken stated that Canada was crucial to its global operations. It highlighted a study that found that 38% of Canadians believe crypto was crucial to the future of the financial system. It also found that 15% of Canadians own crypto, which leaves room for expansion.
However, Kraken recently found itself in regulatory trouble in the United States. It was forced to pay a $30 million fine and halt its staking services after the SEC accused it of violating securities laws.
However, that has not held the company back. At the end of March, the firm signed a deal with Formula 1 team Williams Racing.
