Kraken, a prominent cryptocurrency exchange, is set to suspend all Tether (USDT)-related transactions and several other tokens in Canada. A spokesperson for Kraken noted that they consistently monitor assets on their platform to uphold high compliance standards within the crypto industry. In light of recent regulatory changes in Canada and after extensive consultations with the CSA (Canadian Securities Administrators) and OSC (Ontario Securities Commission), Kraken will suspend trading in USDT, DAI, WBTC (Wrapped Bitcoin), WETH (Wrapped Ether), and WAXL (Wrapped Axelar).
This suspension aligns with the moves made by other major exchanges in 2023. In August, Coinbase ceased trading in USDT, DAI, and RAI, following a similar decision by Crypto.com. These regulatory hurdles may also lead other companies to exit the Canadian market entirely. For instance, OKX ceased its operations in Canada in June, and Binance announced its intention to cease Canadian operations in May. The process of delisting or suspending specific assets in response to regulatory challenges has become a trend in the industry.
Kraken's action involves a phased approach. Starting from November 30, deposit and trading functionalities for the mentioned assets will be halted. Then, beginning on December 4, users will lose the ability to withdraw the underlying assets. Finally, any remaining underlying assets will be converted into U.S. dollars at current market rates and credited to users' accounts as of December 5. Despite this asset suspension, Kraken has signaled its commitment to continue operating in the Canadian market.
In related news, Kraken announced the appointment of a new managing director for its UK operations on October 27. The newly appointed director, Bivu Das, is an entrepreneur and former head of Starling Bank, possessing an extensive background in fintech and traditional financial services. This move suggests Kraken's dedication to expanding its presence and services in the UK.
