Coinbase, Kraken plan to continue operating in Canada as regulatory rules change

Crypto exchanges Coinbase and Kraken have said they plan to continue operating in Canada.

Coinbase says it will serve Canadians

coinbase is March 30th A blog post that Coinbase Canada has signed an enhanced pre-registration agreement with Canadian securities regulators.

The company added that its Canadian presence is part of its international expansion efforts. Coinbase has created a “tech hub” in Canada with more than 200 of her engineers, and said its global team will visit Canada regularly.

Coinbase also said it hired former Shopify senior operations director Lucas Matheson to lead Coinbase’s Canadian operations from Ottawa.

The company’s announcement implied a favorable exchange with Canadian regulators. Its various statements suggest that the country’s regulatory framework provides clarity, enables innovation and protects consumers.

Coinbase, by contrast, is currently embroiled in a dispute with U.S. securities regulators, sending a Wells Notice to the company ahead of possible legal action.

Kraken also works in Canada

Kraken also said We have submitted a pre-registration undertaking to the Ontario Securities Commission (OSC) in Canada and aim to become a registered restricted dealer in that country.

COO David Ripley called Canada a “key region.” [Kraken’s] Mission. “The company has been serving Canadian users for over 10 years and emphasized its local presence, saying he has more than 250 employees in the country.

Kraken Also Highlighted Crypto Adoption Rates In Canada In Another Article blog postThere, they cited OSC’s own stats showing that 13% of Canadians currently own cryptocurrency and 31% of Canadians plan to buy cryptocurrency within a year.

Despite its commitment, the company said it would make “certain changes” to the services it offers in Canada to stay in line with the new regulations.

Canadian Rules Affecting Multiple Exchanges

Kraken’s policy changes are due to regulations currently in place by the Canadian securities regulator. Those rules required cryptocurrency exchanges to pre-register within 30 days from his February 22nd to continue operating in the country.

Under the new rules, exchanges must segregate crypto assets held by Canadian users and refrain from offering certain services. These requirements came after the collapse of US-based cryptocurrency platforms. The failures of FTX, Celsius, Blockphi, Genesis and Voyager Digital are explicitly cited in government statements.

Kraken and Coinbase were among the first exchanges to officially declare their intention to remain in Canada. According to the Canadian Securities Administrator, just another exchange — Crypto.com — Submitted a pre-registration pledge.

Blockchain.com said: on that website Suspend Canadian storage and exchange services. OKX has also told users that it is discontinuing service in Canada.