Kraken has experienced significant benefits from its decision to remain operational in Canada, especially in light of the withdrawal announcements by competitors like Binance and OKX.
Following Binance’s announcement in early May, Kraken witnessed a 25% growth in customer deposits within the country. Additionally, when OKX revealed its plans to leave in March, Kraken observed a fivefold surge in downloads of its two mobile apps among Canadian clients within a week.
Earlier this year, Canada implemented stricter regulations for digital asset trading, prompting several major cryptocurrency exchanges to exit the market. In addition to Binance, OKX, Paxos, Blockchain.com, and Deribit also announced their departures. The most recent departure occurred earlier this week when Bybit made its exit.
Similar to Kraken, Coinbase (COIN), an exchange listed on Nasdaq, expressed its willingness to comply with Canada’s enhanced Pre-Registration Undertaking (PRU). In contrast to the regulatory ambiguity in the United States, Coinbase even expressed its appreciation for collaborating with a regulator that the company could actively engage with.
Kraken, on the other hand, has established a presence in Canada for over a decade. With a team of over 250 employees in the country, Kraken has been operating as a money services business since 2019. Mark Greenberg, the firm’s managing director for Canada, highlighted these facts.
Kraken’s adeptness in adapting to the changing regulatory landscape and offering a compliant platform has made it a compelling choice for Canadian traders. The notable increase in customer deposits and the rising number of app downloads among Canadian users signify a growing confidence and preference for Kraken as a trustworthy and regulated cryptocurrency exchange.
Greenberg expressed his positive view of the Canadian regulatory approach, stating, “I think the Canadian regulatory approach works for us.” He highlighted the aspects that Kraken appreciates, such as the emphasis on security of customer assets, which aligns with their longstanding practices. However, he also acknowledged certain aspects that are less favorable, such as trading and margin limitations.
One of the recently introduced and demanding provisions by the Canadian Securities Administrators (CSA) for crypto exchanges is the mandatory requirement for firms to hold a significant portion of client assets with a third-party custodian.
Kraken’s Review
PRO’s :
- Good Option For Staking: Stake up to 14 cryptocurrencies on one the most secure crypto exchanges in the industry
- Low Spreads & High Liquidity: 0.05% spread for Bitcoin which was 4th place when tested on Mar 2, 2022
- Great Place to Cash Out CAD: Kraken scored 2nd best overall for selling BTC to CAD
- Pro Trading: Powerful trading platform with many trading pairs, different order types, live order books margin and more
- Best Reputation: Kraken has never had any hacks or incidents and it’s also one of the oldest platforms founded in 2011. They take security very seriously
CON’s :
- Deposit Fees: Has e-transfer and wire transfer but it is not free like many other Canadian platforms
- Total BTC Purchase Fee: 1.60% total fee when tested which was 7th overall. If you want to buy crypto with CAD, there are cheaper options out there like NDAX and Newton
- Geo Restrictions: Some features and coins are restricted for Canadian residents (eg. Futures trading)
- Not the Most Beginner Friendly: Much easier platforms are available in Canada like Newton or Shakepay