Cryptocurrency exchange Kraken seems to be enjoying a fruitful presence in Canada as its competitors withdraw from the country. In the wake of the departure announcements of heavyweight exchanges like Binance and OKX in May and March, Kraken reported a 25% growth in its customer deposits and a fivefold increase in downloads of its two mobile apps catering to the Canadian market.
Canada caught the attention of the crypto community earlier this year when they decided to tighten their regulatory framework for digital asset trading. A number of major crypto exchanges, including Binance, OKX, Paxos, Blockchain.com, and Deribit, announced their exits, followed recently by Bybit. In contrast, Kraken appears to be unfazed by the changing regulations, and the same holds true for Nasdaq-listed exchange Coinbase (COIN), which has also expressed its commitment to Canada’s enhanced Pre-Registration Undertaking (PRU).
Mark Greenberg, Kraken’s Managing Director for Canada, highlighted the exchange’s more than 10-year presence in the country along with its local workforce of over 250 staff members. Since 2019, the company has operated as a money services business in Canada. Greenberg said in an interview with CoinDesk, “I think the Canadian regulatory approach works for us.” He went on to cite the aspects the company appreciates – such as the focus on security for customer assets – as well as the less appealing requirements, like limits on trading and margin.
A notable provision introduced by the Canadian Securities Administrators (CSA) is the requirement for crypto exchanges to hold a significant portion of client assets with a third-party custodian. Greenberg mentioned that Kraken, along with other exchanges, has committed to using a third-party custodian and will continue its dialogue with regulators. He acknowledged both the pros and cons of this requirement, stating that the regulator is aware of them.
Ultimately, ensuring the safety and security of client assets remains the highest priority for Kraken. By adhering to the Canadian regulatory approach and focusing on the well-being of its customers, the cryptocurrency exchange is poised to strengthen its position in the Canadian market while the competition packs its bags. This not only exhibits the company’s adaptability in a rapidly changing industry but also reflects its commitment to maintaining a strong presence in regulated markets like Canada.
Source: Coindesk
