Cryptocurrency exchange Kraken is expanding to Canada, thanks in large part to a partnership with crypto-focused payments processor Vogogo.
Kraken currently dominates the euro-based bitcoin trading market, and has consistently ranked in or near the top ten in global trading volume for the past year.
Calgary-based Vogogo aims to take on the load of risk management, compliance and security for payments processed, bridging the gap between the fiat banking and digital currency worlds and allowing exchanges to focus more on their business strategies.
The startup has become a go-to destination for Canada-based cryptocurrency exchanges, as well as those looking to expand into the country. Exchanges have previously experienced difficulties securing banking services in Canada, but have apparently gotten around the issue with Vogogo in the middle.
Last week, it secured $12.5 million toward financing its global expansion efforts.
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Kraken CEO Jesse Powell alluded to the exchange’s expansion to Canada in an interview earlier this month, during which he also suggested a possible increase in leverage allowance should bitcoin prices continue their stability.
Up until recently, Canada appeared to give off a somewhat unwelcoming attitude toward Bitcoin. Much of the government’s focus was on warning on risks and combating financial crime. Recently, however, the government has emphasized the importance of not stifling innovation through regulation, and even embedded its report in the blockchain.
“We see a lot of opportunity for Kraken in Canada and we’re counting on Vogogo’s expertise in risk management and payment processing to make it possible for Canadians to move their dollars safely and efficiently to and from Kraken. We’re looking forward to providing fast settlement and liquidity that will enable the Canadian market for bitcoin and bitcoin businesses to flourish.”
Kraken’s support for Canadian dollars will be facilitated by the Interac and electronic funds transfer (EFT) payments services, in conjunction with Vogogo.