Kraken cryptocurrency exchange, is making a notable change. They have revealed their plan to halt trading for specific digital assets in the Canadian market.
These assets include Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL). This significant alteration is slated to take effect on November 30.
This suspension has been conveyed through multiple customer emails distributed via Cointelegraph. It stems from Kraken’s dedication to maintaining the utmost compliance standards in the cryptocurrency domain, aligning with recent regulatory adjustments in Canada.
Notably, the choice to halt transactions involving these particular assets, while expected by the Canadian crypto community, underscores the ongoing difficulties encountered by cryptocurrency exchanges in Canada.
In response to Cointelegraph’s request for comment, a spokesperson from Kraken provided insight. They mentioned;
“We consistently evaluate the assets on our platform to guarantee strict compliance with the cryptocurrency industry’s strictest standards.” The spokesperson went on to confirm the impending suspensions. They explained, “After substantial consultations with the CSA and OSC and in alignment with recent regulatory changes in Canada, we have informed our clients that we will soon suspend trading for USDT, DAI, WBTC, WETH, and WAXL.”
The email notification strongly stressed Kraken’s dedication to providing an exceptional trading experience for its Canadian users. Subsequently, starting from November 30th, both deposits and trading activities involving these assets will be discontinued.
Kraken’s Recent Changes and Industry Trends: A 2023 Overview
Following this, on December 4th, users will lose the ability to make withdrawals for these assets. Conversely, on December 5th, any remaining assets will be converted to USD at market rates and deposited into user accounts.
This development is part of a trend observed in 2023. Moreover, many exchanges, such as Coinbase and Crypto.com, had already taken similar measures earlier in the year.
Regulatory restrictions have forced multiple companies to exit the Canadian market. Notably, OKX halted its operations in Canada in June, shortly after Binance had announced its intention to do the same in May.
Furthermore, It’s important to note that Kraken’s operations in Canada will persist, with the suspension limited to transactions involving the mentioned assets. Simultaneously, Kraken has introduced another development.
They’ve recently disclosed the appointment of a new managing director for their operations in the United Kingdom. BivuDas, an esteemed entrepreneur and former Starling Bank leader with a strong background in fintech, has taken on this role. This move further bolsters Kraken’s presence in the UK.