Kraken’s Canadian customer deposits increased by 25% after Binance announced its departure.

The cryptocurrency exchange Kraken is benefiting from its decision to remain in Canada while its competitors, such as Binance and OKX, plan to exit. Following Binance’s announcement of its departure in early May, Kraken’s customer deposits in Canada increased by 25% in the following weeks. Similarly, after OKX announced its plan to leave in March, Kraken saw a fivefold increase in downloads of its two mobile apps for Canadian clients within a week. A Kraken representative shared this data with CoinDesk via email.

Canada recently tightened its regulatory framework for digital asset trading, resulting in some of the largest crypto exchanges leaving. Besides Binance, OKX, crypto firms Paxos, Blockchain.com, and Deribit all announced their departures. The most recent one was Bybit earlier this week. However, Kraken and Nasdaq-listed exchange blockchain (COIN) are happy to commit to Canada’s enhanced Pre-Registration Undertaking (PRU) and remain in the country.

Kraken has been in Canada for over a decade, has more than 250 staff there, and has been a money services business in the country since 2019. Mark Greenberg, Kraken’s managing director for Canada, stated that the Canadian regulatory approach works for them. While there are limits on trading and margin that Kraken doesn’t like, the focus on security on customer assets is something they appreciate. One of the new requirements for crypto exchanges set out by the Canadian Securities Administrators (CSA) is the need to hold a significant portion of client assets with a third-party custodian. Greenberg said that they have committed to using a third-party custodian and will continue discussing this with regulators to ensure their clients’ assets’ safety and security.

Edited by Sheldon Reback.