Top U.S crypto exchange Kraken has signed an undertaking ahead of its registration with the securities and exchange commission in Ontario, Canada. This was to demonstrate the exchange’s commitment to adhering with local regulations guiding the crypto industry in the country.
Canada has tightened its regulations around cryptocurrencies recently, forcing exchanges like OKX and Blockchain.com to find new locations. Kraken however has decided to stay and comply with the recent regulatory adjustments regardless.
According to Kraken COO David Ripley, “Canada as a geography is critical to our mission to empower people with new ways to connect and transact.”
Kraken’s Regulatory Struggles
Kraken is a crypto exchange native to America. It however received its fare share of America’s regulatory hardness on crypto when the SEC fined it $30 million for refusing to register with the commission. Kraken through Ripley said the exchange did not register because it wasn’t trading securities.
Meanwhile, the chairman of the commission, Gary Gensler has said that all cryptocurrencies except Bitcoin are securities. The chairman of the commodities futures trading commission (CFTC) however believes Bitcoin and Ethereum are commodities. This confusion stems from a lack of rules for the crypto industry.
Crypto Companies Moving to Crypto Havens
Many crypto startups have already moved out of the U.S and more are leaving due to unclear rules for. While the U.S is suffocating the industry, other cryptocurrencies are creating a conducive environment for it to thrive.
This suggests that it’s only a matter of time before the country is left behind in crypto innovation which is playing a critical role in building civilization.