Kraken, a prominent cryptocurrency exchange, is set to suspend transactions involving Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL) in Canada during the months of November and December.
This development comes in response to recent regulatory changes in Canada and extensive consultations with the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC).
Kraken has communicated this decision to its customers through email notifications, as confirmed by a company spokesperson.
The spokesperson emphasized Kraken’s commitment to maintaining high compliance standards in the crypto industry.
The email sent to clients stated, “In accordance with recent Canadian regulatory changes and following extensive consultation with the CSA and OSC, we today notified our clients that we will soon be suspending trading for USDT, DAI, WBTC, WETH, and WAXL.”
Additionally, the company expressed its dedication to providing an exceptional trading experience for Canadian users despite these suspensions.
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This move by Kraken aligns with a trend observed in the Canadian cryptocurrency market throughout 2023.
Several other exchanges, including Coinbase and Crypto.com, had already ceased trading of USDT and DAI due to regulatory challenges earlier in the year.
Furthermore, OKX and Binance had withdrawn completely from the Canadian market in June and May, respectively.
Kraken’s decision, however, indicates its intention to continue operations in Canada while temporarily suspending transactions related to the specified assets.
The suspension will occur in phases, starting on November 30th with the cessation of deposits and trading functions for the mentioned assets.
On December 4th, users will no longer be able to make withdrawals of these assets.
Finally, on December 5th, any remaining assets will be converted into U.S. dollars at the prevailing market rate and credited to users’ accounts.
In other news, Kraken recently announced the appointment of a new managing director for its U.K. operations on October 27th.
The newly appointed director, Bivu Das, brings extensive experience in fintech and traditional financial services, having previously served as the head of Starling Bank and as an entrepreneur.
This appointment reflects Kraken’s ongoing efforts to expand its presence and leadership in the cryptocurrency industry.
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