Canada Welcomes Kraken: Crypto Exchange Overcomes Regulatory Hurdles
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In a major milestone for the Canadian crypto scene, Kraken has officially secured a Restricted Dealer license with the Ontario Securities Commission, set to take effect in April 2025. This achievement follows a lengthy conditional approval period under a Pre-Registration Undertaking (PRU) that began in 2023.
Kraken's been jumping through regulatory hoops for quite some time now. Finally paid off.
After months of regulatory gymnastics, Kraken finally sticks the landing with their OSC license approval.
The crypto exchange, registered under parent company Payward Inc., follows in the footsteps of Coinbase, which scored similar registration about a year earlier.
Kraken didn't just waltz into this license. They beefed up governance, security, and anti-money laundering protocols to meet OSC's stringent standards. Not exactly a walk in the park.
With the license comes serious responsibilities. Kraken must stick to Know-Your-Customer rules, submit regular transaction reports to regulators, and maintain adequate capital reserves.
They're also eyeing membership with the Canadian Investment Regulatory Organization, which would put them in the same club as Montréal-based Shakepay.
Kraken's ambitions don't stop there. They're gunning for full investment dealer status and approval to operate an Alternative Trading System.
Big plans for a company that already has over $2 billion CAD in assets under management in Canada. Not too shabby.
The new regulatory status should boost investor confidence. Transparency helps, who knew?
This positions Kraken among the top regulated exchanges in Canada alongside Coinbase and WonderFi. The Restricted Dealer classification is one of eight firm registration types recognized by Canadian securities regulators.
The move could potentially attract more institutional investors who've been sitting on the sidelines, waiting for regulatory clarity.
Leading Kraken's Canadian operations is Del Pozo, who played a significant role in securing the Restricted Dealer status through what must have been some interesting regulatory negotiations. Her appointment follows the departure of Alex Mehrdad who left the company last month.
Probably lots of coffee and meetings about meetings.
For Canadian crypto enthusiasts, this development signals a maturing marketplace with stronger consumer protections.
The days of crypto's Wild West reputation might be numbered in Canada. Regulation: sometimes it's actually useful. Who would've thought?
