Kraken, a leading cryptocurrency exchange, has signed a pre-registration undertaking (PRU) with the Ontario Securities Commission, demonstrating its commitment to investor protection rules in Canada.
This move comes after the Canadian Securities Administrators (CSA) amended their regulations in February, causing some major exchanges to leave Canada. However, Kraken and Coinbase have chosen to stay and continue their operations. Kraken’s COO and future CEO, David Ripley, stated that the company’s commitment to Canada will remain strong despite increased regulatory scrutiny.
Kraken recently made headlines when it was fined USD 30 million by the US Securities and Exchange Commission (SEC) and agreed to halt its staking operations as part of the settlement. The company had previously refused to register with the SEC, arguing that it did not trade securities. This position contradicts SEC Commissioner Gary Gensler’s view that all crypto assets, except Bitcoin, are securities.
Despite criticism for the US SEC’s enforcement actions, crypto platforms may find a more supportive environment in Canada, which has established clear guidelines and expectations for both exchanges and investors. This may explain why Kraken and Coinbase have chosen to continue their operations in the country. In contrast, SEC Commissioner Gary Gensler is scheduled to appear before the US Congress’ House Financial Services Committee in April to defend the SEC’s actions against the crypto industry. The outcome of this appearance could have significant implications for the crypto industry in the US.