Crypto exchange Kraken has demonstrated its commitment to Canada's financial sector by signing a pre-registration undertaking (PRU) with the Ontario Securities Commission.
Such a decision signifies the exchange's adherence to the stringent investor protection rules, which were amended by the Canadian Securities Administrators (CSA) in February. While these tighter regulations prompted some major exchanges, such as OKX and Blockchain.com, to exit Canada, others like Coinbase and Kraken have chosen to stay.
Kraken COO and soon-to-be CEO David Ripley stated:
"Canada as a geography is critical to our mission to empower people with new ways to connect and transact."
Having operated in Canada for over a decade, Kraken's commitment to the country is set to continue despite the increased regulatory scrutiny. In the meantime, Kraken also recently implemented a pause for ACH settlements.
Notably, Kraken recently made headlines when it was fined $30 million by the United States' Security and Exchanges Commission (SEC) and agreed to halt its staking operations as part of the settlement. This followed Kraken's refusal to register with the SEC in September, with Ripley asserting that the exchange had no plans to register since it did not trade securities. It was during this same period that Kraken's ex-CEO stepped down.
This position contradicts SEC Commissioner Gary Gensler's insistence that all crypto assets, barring Bitcoin, are securities. In this sense, Gensler reveals himself to be a Bitcoin maximalist, but also represents a restricted view of the crypto space as an evolving, global ecosystem.
Gensler has faced substantial criticism for the SEC's aggressive enforcement actions, rather than providing guidance to the rapidly growing crypto sector. In contrast, Canada appears to offer a more supportive environment for crypto platforms, with its clear guidelines and expectations for both exchanges and investors.
Meanwhile, Gensler has been summoned to appear before the United States Congress' House Financial Services Committee (HFSC) on April 18 to defend the SEC's actions against the crypto sector. HFSC Chairman Patrick McHenry has questioned Gensler's approach to "rulemaking" and "digital assets." The outcome of this appearance will undoubtedly have significant implications for the crypto industry, particularly in the US.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.