Crypto exchange Kraken to Suspend Trading of Certain Tokens in Canada
Kraken, a popular cryptocurrency exchange, has announced its decision to suspend trading, deposits, and withdrawals for certain value-pegged tokens in Canada. This move follows similar actions taken by other Canadian exchanges due to regulatory concerns surrounding these tokens.
According to an email received from Kraken, the exchange is required to suspend activities related to Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL) in Canada. The suspension will begin on November 30 and withdrawals will be halted on December 4. Any remaining assets on the platform will be converted into USD at the prevailing market rate on December 5.
These tokens, including USDT and WBTC, are derivatives of other currencies and digital assets. They are backed by centralized reserves consisting of cash and BTC.
Kraken’s decision aligns with a broader crackdown on stablecoins in Canada. Earlier this year, Coinbase, a rival exchange, announced the cancellation of support for stablecoins including USDT, RAI, and DAI, citing failure to meet listing standards. Crypto.com also announced a similar halt in January, citing instructions from the Ontario Securities Commission (OSC).
The Canadian Securities Administrators (CSA) clarified in December that they consider any value-pegged crypto assets as securities. As a result, trading platforms in Canada are prohibited from allowing clients to trade or obtain exposure to such assets deemed as securities or derivatives.
Despite the stringent regulations, Coinbase has praised Canadian lawmakers for recognizing citizens’ right to self-custody and understanding the unique nature of stablecoins compared to other cryptocurrencies.
It remains to be seen how these regulatory actions will impact the crypto industry in Canada. However, it is clear that exchanges are taking steps to comply with the evolving regulatory landscape.
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