In a climate of increased scrutiny over stablecoins, Kraken, a top Canadian cryptocurrency exchange, has announced its decision to discontinue support for several reserve-backed assets in Canada.
Major Changes for Kraken Users in Canada
In a recent correspondence to CryptoPotato, Kraken highlighted a mandatory cessation of activities related to a selection of value-pegged tokens. Starting from November 30, 12:00 p.m. EST, the platform will cease accepting deposits and trading for coins like Tether (USDT), Dai (DAI), and Wrapped variants such as Bitcoin and Ether.
By December 4, 11:00 a.m. EST, withdrawals will be halted. Remaining assets on the exchange will be automatically converted to USD at the current market rate come December 5. Kraken urges those holding balances in the affected tokens to either trade them for supported pairs or initiate withdrawals before the stipulated deadline.
These assets share a common characteristic: they are derived from other currencies or digital assets. For instance, USDT and WBTC are based on the US dollar and Bitcoin, with centralized reserves of cash and BTC backing them, respectively.
Regulatory Ripples in the North
Earlier this year, Coinbase, a significant competitor to Kraken, decided to drop support for stablecoins like USDT, RAI, and DAI in Canada, citing they didn’t align with the firm’s listing criteria. This move came into action just a month ago.
Crypto.com had previously made a comparable move in January, pinpointing directives from the Ontario Securities Commission (OSC) as the reason. Coinbase, in defense of its stance, often underscores that it refrains from listing securities on its platform.
In the ongoing debate about the legal positioning of stablecoins in the U.S., the Canadian Securities Administrators (CSA) expressed their perspective last December, categorizing value-anchored crypto assets as securities.
The CSA further emphasized that Canadian crypto platforms should not allow their users to engage in trading or gain exposure to any crypto asset deemed a security or derivative.
Nevertheless, despite these stringent regulations, Coinbase commends Canadian legislators for their forward-thinking approach, especially acknowledging recommendations that emphasize citizens’ self-custody rights and distinguishing stablecoins from other crypto varieties.
Kraken’s Strategic Growth Beyond Canadian Borders
Even as Kraken navigates regulatory turbulence in Canada, its global footprint continues to grow. In a noteworthy move, the exchange has brought on Bivu Das to helm its U.K. operations as the new managing director.
Bivu Das, whose appointment was unveiled on October 27, boasts an impressive resume. With entrepreneurial instincts, Das has formerly played a significant role at Starling Bank. His deep knowledge, spanning fintech and the conventional financial arena, positions him as a crucial player for Kraken’s ambitions in the U.K.
The ever-shifting landscape of the cryptocurrency world requires platforms like Kraken to be agile in their approaches, adapting to new regulations.
While the recent changes may impact Canadian patrons, Kraken’s dedication to quality service in the area remains unwavering. Its endeavors to strengthen its foothold in international territories, showcased by pivotal hires in the U.K., highlight the platform’s expansive global visionary
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