Kraken, Canadian customer funds increased by 25% ── Binance, etc. announced withdrawal | coindesk JAPAN | Coindesk Japan

Cryptocurrency exchange Kraken is profiting from staying in Canada after rivals such as Binance and OKX announced their exits.

Kraken’s client capital in the country has increased by 25% in the weeks following Binance’s exit announcement in early May. Two mobile apps for Canadian customers saw a five-fold increase in downloads in the week after OKX announced it planned to exit in March. A Kraken representative provided this data to CoinDesk via email.

Canada tightened its regulatory framework for cryptocurrency trading earlier this year, resulting in the exit of several large exchanges. Not only Binance and OKX, the largest exchanges by trading volume, but also crypto firms such as Paxos, Blockchain.com and Deribit have announced their withdrawal. The most recent withdrawal was Bybit earlier this week.

Like Kraken, Nasdaq-listed exchange Coinbase said it was delighted to commit to Canada’s Enhanced Pre-Registration Unit (PRU). The company even says it loves working with regulators compared to America’s lack of clarity.

Kraken has been in Canada for more than 10 years, has more than 250 local staff, and has been developing its money services business in the country since 2019, said Mark Greenberg, the company’s managing director of Canada. Mark Greenberg said.

“I think Canadian regulation is good for us,” Greenberg said in an interview with CoinDesk. “For example, our focus on customer asset security is what we have always done.

Tough new rules for cryptocurrency exchanges announced by the Canadian Securities Administration (CSA) earlier this year require companies to deposit the majority of their customer assets with third-party custodians.

“As part of our commitment, we have committed to using a third-party custodian, and I think we will continue to discuss that with regulators,” said Greenberg. “This is a controversial issue and I think regulators are aware of the pros and cons and options on this issue. or get involved in other crimes.”

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Crypto Exchange Kraken’s Canada Customer Deposits Rose 25% After Binance Announced Departure