Size and energy allowed Kraken to stay in Canada after the imposition of new registration requirements for crypto exchanges in February. But in spite of the demanding process, the regulatory clarity has benefited the company, Kraken managing director for Canada Mark Greenberg said.
Speaking to Cointelegraph’s Sam Bourgi at the Blockchain Futurist Conference in Toronto, Greenberg had positive things to say about the Canadian regulatory environment:
“The Canadian regulators have been collaborative, helpful. […] There’s a clear regulatory pathway. It’s allowed us to invest in the country.”
Kraken has a staff of over 250 in Canada, Greenberg said. That strong base has been key to the company’s success in the country. After registration rules for crypto exchanges were tightened in Canada in February by the Canadian Securities Administrators, requiring them to register as restricted dealers, some exchanges, such as OKX, left the country.
“It’s not the easiest thing to meet those requirements,” Greenberg said, “especially for smaller platforms […] that just weren’t able to put that kind of energy against it.”
Kraken, however, reiterated its commitment to Canada, where it has been operating with money service business registration since 2011. “It took a lot of work for us,” Greenberg continued. “We’re lucky in that we have a great user base here in Canada, and we were able to make those costs work.”
“We need to solve the fraud problem, we need to solve scams, and we need to stop talking about it as a crypto-specific issue.”
— Kraken Exchange (@krakenfx) August 16, 2023
On-ramps and off-ramps remain challenging. The five major banks in Canada “have typically been relatively hostile to crypto,” according to Greenberg. It is possible to make fiat payments to crypto exchanges or receive fiat from them in person at Canada Post. In addition, Kraken has partnered with the Canadian payment service Payper to provide instant e-money transfers of up to 3,000 Canadian dollars.
“We have many rails we hope to build over the coming months and years,” Greenberg said.