US-based crypto exchange Kraken, which is already active in Canada, has filed for restricted dealer status with the Ontario Securities Commission to comply with the new regulations, CoinDesk confirms.
Registered in Canada as a monetary services business, Kraken operated there for over ten years and now has to comply with the new guidance for crypto trading platforms. On February 22. the Canadian Securities Administrators (CSA) created new instructions for crypto trading platforms. Thus, making companies like Kraken file registration and follow the new regulations which include the new investor protection.
The regulations consist of new custody standards, restricted use of leverage as well a ban on stablecoin trading unless it was approved by the CSA. CSA defined the companies that do not fit under any other category as restricted dealers. For businesses with this status, regulations are specifically tailored.
Mark Greenberg, a managing director for Kraken Canada said:
“We want both existing and prospective clients to know Kraken remains committed to Canada.”
Another cryptocurrency company announced their decision to temporarily stop providing services to Canadian customers, as they face working their way through new regulations. In their announcement on 20th March, OKX added that they will return to the Canadian market as soon as they finish their work with regulations.
The 13 regional securities regulators in Canada are unified under the CSA. In Canada, there is no federal regulatory body. For companies conducting business in other provinces or territories, registration by one CSA member serves as a sort of "passport."
The US Securities and Exchange Commission charged Kraken with a 30 million USD fine after it failed to register its staking-as-a-service program as a security. Despite this fine, Kraken is still keen on providing the stacking program to non-U.S. customers.