Kraken Files Pre-Registration with Canada’s Ontario Regulator

Thursday, 30/03/2023 | 16:04 GMT by Solomon Oladipupo
  • OSC banned KuCoin and fined Bybit last year for operating without authorization.
  • However, Kraken says it remains committed to Canada.
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Kraken, one of the longest-running cryptocurrency exchanges in the industry, has filed a pre-registration with the Canada’s Ontario Securities Commission (OSC). The move is part of the US-based digital asset firm’s efforts to become a registered Restricted Dealer across all regions in Canada.

The cryptocurrency exchange announced the development in a statement shared with Finance Magnates on Thursday. It noted that it took to the action in order “to comply with the Canadian Securities Administrators’ recently enhanced investor protection guidance."

OSC Demands Registration

In June last year, OSC banned the cryptocurrency exchange, KuCoin and slapped a heavy fine on Bybit for not complying with local regulations. Both platforms were fined $1.6 million and $2.5 million, respectively.

The ban came over a year after the Ontario securities watchdog warned unauthorized cryptocurrency exchanges in the province to get in touch with the agency or face enforcement actions. In 2021, the cryptocurrency exchange giant, Binance exited Ontario amidst mounting regulatory scrutiny.

Kraken Reaffirms Commitment to Canada

However, on Thursday, Kraken noted that the pre-registration demonstrates its “broader commitment to its Canadian clients, the market and its global mission.”

Currently, Kraken offers its Canadian customers access to over 175 digital assets and five Canadian dollar trading pairs on its global spot market. In July 2019, the cryptocurrency exchange registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada.

“We want both existing and prospective clients to know Kraken remains committed to Canada,” said Mark Greenberg, Kraken’s Managing Director for Canada at Kraken, explaining the reason for the digital asset's pre-registration with the Ontario regulator.

Greenberg reiterated that Kraken would continue to engage with local regulators to enhance its understanding of crypto’s economic benefits and transformative potential.

Kraken Faces Aftermath of US Bank Collapse

Meanwhile, Kraken pre-registration with OSC comes at a time the exchange is battling with the collapse of US-based crypto-friendly banks, Silvergate Bank and Signature Bank. Last Thursday, the digital asset firm announced that it would cease its support for Automated Clearing House (ACH) deposits and withdrawals from 27 March 2023.

Kraken is one of the many crypto exchanges that have been using Silvergate Exchange Network (SEN) for ACH settlements in the US since 2019.

Saxo's New Portal; JPX Gets into DeFi; read today's new nuggets.

Kraken, one of the longest-running cryptocurrency exchanges in the industry, has filed a pre-registration with the Canada’s Ontario Securities Commission (OSC). The move is part of the US-based digital asset firm’s efforts to become a registered Restricted Dealer across all regions in Canada.

The cryptocurrency exchange announced the development in a statement shared with Finance Magnates on Thursday. It noted that it took to the action in order “to comply with the Canadian Securities Administrators’ recently enhanced investor protection guidance."

OSC Demands Registration

In June last year, OSC banned the cryptocurrency exchange, KuCoin and slapped a heavy fine on Bybit for not complying with local regulations. Both platforms were fined $1.6 million and $2.5 million, respectively.

The ban came over a year after the Ontario securities watchdog warned unauthorized cryptocurrency exchanges in the province to get in touch with the agency or face enforcement actions. In 2021, the cryptocurrency exchange giant, Binance exited Ontario amidst mounting regulatory scrutiny.

Kraken Reaffirms Commitment to Canada

However, on Thursday, Kraken noted that the pre-registration demonstrates its “broader commitment to its Canadian clients, the market and its global mission.”

Currently, Kraken offers its Canadian customers access to over 175 digital assets and five Canadian dollar trading pairs on its global spot market. In July 2019, the cryptocurrency exchange registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada.

“We want both existing and prospective clients to know Kraken remains committed to Canada,” said Mark Greenberg, Kraken’s Managing Director for Canada at Kraken, explaining the reason for the digital asset's pre-registration with the Ontario regulator.

Greenberg reiterated that Kraken would continue to engage with local regulators to enhance its understanding of crypto’s economic benefits and transformative potential.

Kraken Faces Aftermath of US Bank Collapse

Meanwhile, Kraken pre-registration with OSC comes at a time the exchange is battling with the collapse of US-based crypto-friendly banks, Silvergate Bank and Signature Bank. Last Thursday, the digital asset firm announced that it would cease its support for Automated Clearing House (ACH) deposits and withdrawals from 27 March 2023.

Kraken is one of the many crypto exchanges that have been using Silvergate Exchange Network (SEN) for ACH settlements in the US since 2019.

Saxo's New Portal; JPX Gets into DeFi; read today's new nuggets.

About the Author: Solomon Oladipupo
Solomon Oladipupo
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About the Author: Solomon Oladipupo
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
  • 1050 Articles
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