Kraken will temporarily halt all transactions related to Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL) in Canada in November and December, according to multiple emails received by customers.
In response to a request for comment from Cointelegraph, a Kraken spokesperson stated: “We continuously monitor the assets on our platform to ensure we meet the highest compliance standards in the cryptocurrency industry” before confirming the suspension.
According to the spokesperson:
“Based on recent regulatory changes in Canada and following extensive consultation with the CSA and OSC, today we informed customers that we will be temporarily suspending trading for USDT, DAI, WBTC, WETH, and WAXL.”
The email further states that Kraken is still “committed to providing Kraken’s Canadian customers with a special trading experience.”
The suspension may not come as a surprise to many cryptocurrency users in Canada, as they have witnessed several notable exchanges take similar actions throughout 2023. In August, Coinbase halted trading for USDT, DAI, and RAI, following a similar move by Crypto.com after they delisted USDT.
The legal challenges faced by these companies could also lead other firms to withdraw entirely from the Canadian market. OKX also ceased operations in Canada in June after Binance announced its intention to do so in May.
For its part, Kraken appears to continue operating in Canada and will only temporarily suspend transactions related to the five specific assets.