Canada’s strict regulations surrounding crypto exchanges have reportedly allowed companies like Kraken to conduct clear business decisions. In an interview with Cointelegraph, the managing director for Kraken Canada, Mark Greenberg, articulated a positive stance towards these doctrines, stating that Canadian regulators have been exceptionally helpful and have created a clear regulatory pathway for crypto businesses.
After the Canadian Securities Administrators hardened registration rules for crypto exchanges in February, obliging them to constitute as restricted dealers, some companies unquestionably felt the pressure. OKX, notably, opted to exit the Canadian market, rather than acquiescing to the stringent restrictions.
However, Greenberg suggests that the process, while complex, has provided a sense of regulatory clarity which has ultimately been conducive to Kraken’s success in the country. Challenging as it may be, especially for smaller platforms, adhering to these hefty undertakings was made feasible for Kraken due to an extensive user base and staff of over 250 people in Canada. That was the key advantage enabling them to work relentlessly, endure the process, and consequently retain their robust presence in the country since their money service business registration back in 2011.
On the flip side, there are indisputable challenges in the Canadian regulatory environment. Notably, the hostility displayed towards crypto by the five major banks in the country has been a formidable hurdle for on-ramps and off-ramps. It only allows for fiat payments to be made to crypto exchanges or received from them in person at Canada Post, which is far from ideal.
Kraken has responded by partnering with the Canadian payment service Payper, to provide instant e-money transfers of up to 3,000 Canadian dollars. This has been presented as their first step in building several ‘rails’ for encrypted transactions.
Reflecting on these two opposing sides, the outstanding question here is – does the market success derived from Canada’s stringent regulatory framework outweigh the complications and obstacles created by the country’s dominant banking sector? Regardless of the hurdles, the longevity of Kraken in Canada speaks to an intricate balance where both challenge and opportunity coexist.
The final verdict? This regulatory journey might just be the driving force enabling the future of blockchain in the Canadian landscape.
Source: Cointelegraph
