Kraken Exchange to Suspend Trading of Tether, Dai, and Wrapped Tokens in Canada
Kraken, one of the leading cryptocurrency exchanges, has announced that it will temporarily suspend all transactions involving Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL) in Canada. The decision comes as a response to recent regulatory changes in the country and after extensive consultations with the CSA (Canadian Securities Administrators) and the OSC (Ontario Securities Commission).
In an email response to Cointelegraph’s query, a spokesperson for Kraken confirmed the suspension and stated, “We constantly monitor the assets on our platform to ensure we are meeting the highest compliance standards in the crypto industry.” The spokesperson went on to explain the reasoning behind the decision, saying, “In accordance with recent Canadian regulatory changes and following extensive consultation with the CSA and OSC, we today notified our clients that we will soon be suspending trading for USDT, DAI, WBTC, WETH, and WAXL.”
The announcement from Kraken comes as several other prominent exchanges have taken similar actions throughout 2023. In August, Coinbase also suspended trading of USDT, DAI, and RAI in Canada, following a move by Crypto.com to delist USDT. These suspensions are a result of the regulatory challenges faced by cryptocurrency firms operating in the Canadian market.
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Moreover, some exchanges have completely withdrawn from the Canadian market due to these challenges. OKX ceased operations in Canada back in June, while Binance announced its intention to leave the market in May. In contrast, Kraken appears to be committed to the Canadian market and will only be suspending transactions related to the five mentioned assets.
According to the email sent to Kraken’s customers, starting from November 30th, deposits and trading functions of the aforementioned assets will no longer be available. From December 4th, users will be unable to withdraw these assets. Finally, on December 5th, any remaining assets will be converted to U.S. dollars at the prevailing market rate and credited to users’ accounts.
While the suspension may inconvenience some users, Kraken emphasized its commitment to providing Canadian clients with an exceptional trading experience. The exchange has been working closely with regulators to ensure compliance with new regulations and the highest industry standards.
In other news, Kraken recently announced the appointment of a new managing director for its operations in the United Kingdom. Bivu Das, an entrepreneur and former head of Starling Bank with a background in fintech and traditional financial services, will lead Kraken’s operations in the UK. This appointment reflects Kraken’s continued expansion and focus on providing top-notch services in key cryptocurrency markets.
These regulatory developments and the subsequent suspensions in Canada highlight the evolving landscape for cryptocurrencies and the challenges faced by exchanges in complying with the ever-changing regulatory environment. As governments strive to strike a balance between protecting investors and fostering innovation in the crypto industry, exchanges like Kraken must adapt to these changes while continuing to provide reliable services to their users.
In conclusion, Kraken’s decision to suspend trading of certain tokens in Canada is a direct response to recent regulatory changes and consultations with Canadian regulators. The temporary suspension reflects the challenges faced by cryptocurrency exchanges operating in the country and highlights the need for compliance with evolving regulations. Despite these challenges, Kraken remains committed to its Canadian clients and aims to provide them with a seamless trading experience.
