Cryptocurrency exchange Kraken has filed a pre-registration application with the Securities and Exchange Commission of Ontario (Canada) to obtain restricted operator status. US-based Kraken already operates in Canada and is acting to comply with the new guidelines.
Kraken is registered in Canada as a money services business and has been operating there for over ten years. On February 22, The Canadian Securities Administrators (CSA) launched new guidelines for crypto asset trading platforms, requiring Kraken to submit a pre-registration commitment legally committing to abide by the new investor protections.
New requirements that cryptocurrency trading platforms will be subject to include new custody rules, restrictions on the use of leverage, and a ban on trading stablecoins without the prior written consent of the CSA. Kraken Canada Managing Director Mark Greenberg has stated:
“We want both existing and potential customers to know that Kraken remains committed to Canada.”
The restricted merchant registry is “a special type of merchant registration used for businesses that do not fit into any other category” according to CSA definitions. Regulators tailor the requirements for companies with this status on an individual basis.
Restricted dealer registration is “a special kind of dealing registration used for firms that do not quite fit under any other category” under CSA definitions. Regulators tailor requirements for firms with this status individually.
CRYPTO changes for Canada are coming! #crypto #Bitcoin #Canada pic.twitter.com/40qLdQLLru
— megbzk (@megbzk) March 26, 2023
Changes are coming for the CRYPTO sector for Canada!
Cryptocurrency exchange OKX announced on March 20 that it would stop serving Canadian clients within three months due to “new regulations.” OKX added that its withdrawal from the country was temporary and that it was working with regulators.
The CSA is the umbrella organization for Canada’s 13 regional securities regulators. There is no Canadian federal regulator. Registering as a CSA member provides a “passport” to businesses operating in other provinces or territories.
In February, Kraken paid $30 million in fines and rebates in the United States after the Securities and Exchange Commission accused it of failing to register its gambling-as-a-service program as a security. Kraken then said that it would continue to offer its staking program to non-US clients.
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