The recent increase in regulatory requirements in Canada led to a great deal of speculation on which cryptocurrency firms will continue operating in the country. Already on March 20th, OKX announced it would be departing the market due to the new legal framework. Today, however, the cryptocurrency exchange Kraken reaffirmed its commitment to remain in Canada and announced it has filed a pre-registration undertaking (PRU) with the Ontario Securities Commission.
Kraken Has No Plans of Leaving Canada
Canada recently tightened its regulation with regard to digital assets. The new undertaking, which cryptocurrency exchanges are required to sign, comes with a long list of terms and restrictions. The new rules already saw the digital asset exchange OKX depart the market and caused widespread speculation on which companies would remain committed to operating in US’s northern neighbor.
On Thursday, March 30th, the cryptocurrency exchange Kraken revealed it had taken a big step toward being a registered Restricted Dealer in Canada by filing a pre-registration undertaking (PRU) with the Ontario Securities Commission. According to the press release, the move indicates the company’s commitment to remaining in the country long-term.
The exchange also characterized Canada as “a cornerstone of (its) global business” and highlighted the fact that, according to a recent survey, 38% of Canadians believe that cryptocurrencies will play an important role in the future of finance. Kraken recently found itself in some regulatory trouble in the US as it was forced to terminate its staking service due to a settlement with the SEC. The company has, despite the setback, continued its expansion and has recently partnered with the F1 team Williams Racing.
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Cryptocurrency Companies Push for A Better Legal Framework
While many cryptocurrency companies have, broadly speaking, from the fact that the legal framework governing digital assets could have been, for a long time, described as the wild west, things have recently taken a sharp turn. Due to several high-profile catastrophes in the industry, regulators, particularly in the US, are looking at the sector with increased hostility.
At the same time, while some state governments have taken a proactive approach, the federal government is yet to create anything resembling a clear framework. As a result, multiple major firms have revealed their numerous attempts both to work with legislators on new rules and to work with regulators to being themselves into compliance with the existing laws.
So far, the efforts have been relatively unsuccessful, in the US at least, and companies like Coinbase have started warning that the current regulatory landscape could drive innovation out of the country. The firms have, however, been positive toward countries actively seeking to offer more clarity, even if the new frameworks are more restrictive, and Coinbase has recently allegedly praised the EU and UK’s efforts.
Do you think other major cryptocurrency exchanges will also choose to remain in Canada? let us know in the comments below.
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