Kraken, a leading cryptocurrency exchange, has successfully obtained a restricted dealer registration in Canada, reaffirming its dedication to the market. This achievement follows the departure of its competitor, Gemini, from the Canadian market, underscoring Kraken’s commitment to providing regulated crypto services to Canadian investors.
In an announcement shared with Cointelegraph on April 2, Kraken emphasized the significance of this compliance milestone. The exchange currently manages over $2 billion CAD ($1.4 billion USD) in combined assets under custody for its Canadian users, highlighting its strong presence in the country’s crypto ecosystem.
Kraken’s New Leadership for North America
Alongside this regulatory achievement, the US based crypto exchange has also announced a leadership change, appointing Cynthia Del Pozo as the new General Manager for North America. Del Pozo previously served as the Head of Strategy at Gemini, which exited the Canadian market in late 2024. Her extensive experience in the industry is expected to play a pivotal role in Kraken’s expansion and long-term growth strategy in North America.
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Understanding Restricted Dealer Registration
The restricted dealer registration is one of the eight firm registration categories outlined by the Canadian Securities Administrators (CSA). Unlike investment dealers or investment fund managers, restricted dealers are firms that do not fit within conventional regulatory classifications. As a result, they must adhere to specific regulatory conditions imposed by Canadian securities regulators.
Kraken’s new registration ensures that its platform operates under a solid regulatory framework, supervised by the Ontario Securities Commission (OSC). This oversight is crucial in fostering investor confidence and enhancing the security of cryptocurrency trading in Canada.
The Impact of Gemini’s Exit from Canada
Gemini’s departure from Canada in late 2024 raised concerns about regulatory clarity and the challenges faced by crypto exchanges in navigating Canadian compliance requirements. The exit left a gap in the market, which Kraken is now well-positioned to fill with its reinforced regulatory compliance and strategic expansion plans.
Despite Gemini’s exit, Del Pozo remains optimistic about Canada’s crypto landscape. She believes that the country is at a pivotal moment in terms of cryptocurrency adoption. “Canada is at a turning point for crypto adoption, with a growing number of investors and institutions recognizing digital assets as a vital part of the financial future,” she stated in their official announcement.
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Looking Ahead: Kraken’s Vision for Canada
With its new regulatory status and leadership in place, Kraken aims to continue delivering innovative and compliant crypto solutions to Canadian investors. Del Pozo’s leadership will likely drive further growth, ensuring it’s long-term presence in the region.
“I’m thrilled to join Kraken’s mission at this critical moment and to lead our expansion efforts, ensuring we continue to serve our clients long-term with innovative and compliant products,” Del Pozo affirmed.
As Canada’s crypto market evolves, Kraken’s strengthened regulatory position and commitment to compliance set a strong foundation for future growth, making it a key player in the region’s digital asset landscape.
