Kraken Scoops Up Canada Users and Deposits After Binance, OKX Leave

Binance and OKX, but also Paxos, Blockchain.com, Deribit, and ByBit have all left Canada.  

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  • Kraken has decided to play ball with Canadian regulators.
  • Binance, OKX, and others have formed a mini-exodus from Canada.
  • The Canadian regulations have helped boost those who are happy to comply.

Regulatory pressure across North America has impacted the running of crypto businesses as both Binance and OKX have left the shores of Canada. However, there is a high reward for the exchanges that have stayed.

It has been revealed that Kraken’s customer deposits rose 25% in the wake of Binance’s announcement to depart Canada. Kraken also saw a fivefold increase in app downloads within a week of OKX leaving in March.

A Tighter Framework

Similarly to its southern neighbor, Canada has become a difficult place for crypto companies to operate in. In February, Canadian securities regulators strengthened oversight and enhanced expectations of crypto asset trading platforms operating in Canada.

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The Canadian authorities highlighted “recent insolvencies involving several crypto asset trading platforms” as a motivating factor for their new regulations. For exchanges to continue trading in Canada, they must register with regulators and follow strict guidelines.

This requirement has been too difficult for some, including Binance and OKX, but also Paxos, Blockchain.com, Deribit, and ByBit

Playing Ball

With increased deposits and customer acquisition, Kraken is reaping the rewards of committing to Canada’s enhanced Pre-Registration Undertaking (PRU). Even Coinbase, embroiled in its own regulatory battle in the U.S., has stayed in Canada and is happy to commit to the new rules. 

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For Coinbase, the concern is not strict regulations; it is unclear and ambiguous ones – which are prevalent in the U.S. In fact, speaking to Coindesk, Coinbase’s VP of International and Business Development, Nana Murugesan, has said they are ‘loving’ crypto regulation by engagement, as is done in Canada. 

Getting in Line

With the PRU seemingly tough enough to cause a mini-exodus, some are left questioning the exchanges unwilling to get in line. Binance, for instance, has been questioned on its transparency with regulators before, with this latest move in Canada again causing concerns. 

Read more about Canada’s Crypto Exodus:

Canada’s Crypto Exodus: Bybit Walks Away

Read more about the crypto arms race between the U.S. and China:

Coinbase CEO: China Will Beat U.S. in Crypto Arms Race

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Darryn Pollock

Darryn Pollock is a South African-born, UK-based journalist and content writer for DailyCoin with a focus on regulation and legislation revolving around the cryptocurrency space. He has covered the evolving crypto regulatory space, and examined how the US has approached law-making to offer protection in the growth of innovation. Darryn values traditional journalistic principles of truth, accuracy, independence, fairness, and impartiality, and has a Bachelor of Arts degree in Journalism and Law from Rhodes University in South Africa.