Binance’s Exit Sparks 25% Increase in Customer Deposits at Kraken Canada

Kraken, a cryptocurrency exchange, has observed favorable results by maintaining its operations in Canada amidst the plans of rivals such as Binance and OKX to withdraw. Following Binance’s announcement of its departure in early May, Kraken experienced a notable 25% increase in customer deposits within the country.

Binance has made an official announcement regarding its decision to exit the Canadian marketplace on May 15. The reason cited for this departure is the introduction of new regulations related to stablecoins and investor limits in the country. 

Despite expressing disagreement with these new regulations, the cryptocurrency platform has expressed a desire to collaborate with Canadian regulators in order to establish a regulatory framework that addresses the needs of the cryptocurrency industry.

Kraken benefitting from Binance’s exit

Kraken observed a significant surge in downloads of its two mobile apps for Canadian clients, reaching five times the usual volume, within a week after OKX announced its intention to exit in March. These statistics were shared with CoinDesk via email by a representative from Kraken.

Canada implemented stricter regulations for digital asset trading earlier this year, leading to the departure of several prominent cryptocurrency exchanges. Alongside Binance, which is the largest exchange in terms of traded volume, other crypto firms such as Paxos, Blockchain.com, Deribit, and most recently, Bybit, have also announced their departures from the Canadian market.

Coinbase (COIN) expressed its satisfaction in committing to Canada’s enhanced Pre-Registration Undertaking (PRU). In contrast to the regulatory ambiguity in the United States, Coinbase went as far as stating its appreciation for collaborating with a regulator with whom the company could actively engage. Coinbase (COIN) expressed its satisfaction in committing to Canada’s enhanced Pre-Registration Undertaking (PRU). In contrast to the regulatory ambiguity in the United States, Coinbase went as far as stating its appreciation for collaborating with a regulator with whom the company could actively engage.