In Feb 2022, the Canadian Securities Administrators (CSA) issued tougher rules and guidelines for crypto exchanges to enhance investor protection.
That led big crypto players like OKX, Binance, Blockchain.com, and Deribit to exit or plan to exit the Canadian market. It also resulted in many crypto enthusiasts wondering whether Kraken is still legal in Canada.
Is Kraken Legal in Canada
Yes, Kraken is currently legal in Canada. As big players like Binance plan to exit Canada this year, Kraken has agreed to comply with a new set of tougher investor protection rules and guidelines issued by CSA.
To that end, Kraken has entered into a pre-registration undertaking (PRU) with the OSC, its principal regulator, and continues to engage with regulators as it works “towards becoming a registered Restricted Dealer in Canada.”
The US-based crypto exchange has enabled Canadians to trade Bitcoin, Ethereum, and a wide selection of other cryptocurrencies for more than 10 years and has operated as a FINTRAC-registered MSB since 2019.
Thus, Kraken is still in Canada and continues to operate as regulators review its application for registration.
Kraken
Trade 200+ popular coins
Best for advanced crypto trading tools
Competitive trading fees
Earn up to 24% staking rewards
How Does Kraken Work?
Kraken works pretty much like other cryptocurrency exchanges. The platform offers 200+ coins, with a low minimum investment of as little as $10.
Once you create an account and complete KYC verification, you can fund your Kraken wallet via wire transfer, e-Transfer, ACH transfer, credit/debit card, Etana Custody, or crypto deposits.
The platform offers many crypto trading options, including spot & margin trading, crypto derivatives, gas-free NFTs trading, crypto staking, and an advanced Kraken Pro mobile app to trade and transact on the go.
Kraken Fees in Canada
Kraken fees in Canada are some of the lowest in the Canadian crypto space. The platform uses a volume-based maker-taker fee structure.
Maker fees start at 0.16% and decrease to 0%, while taker fees start at 0.26% and decrease to 0.1% as your 30-day trading volume increases from $50,000 to $10M+
Is Kraken Safe?
While no crypto exchange’s 100% safe and secure from hacks and cyberattacks, Kraken puts robust security measures to ensure the safety and security of user funds, including:
- 2FA with Yubikey and Google Authenticator support
- Advanced cold storage and hot wallet solutions
- Email confirmation for withdrawals with self-serve account lock
- SSL encryption
- Proof of Reserves audit with an external auditor
- ISO 27001 and SOC 2, Type 1 certified
- Runs a Bug Bounty program
- Configurable account timeout and global settings time lock
Plus, Kraken is a FINTRACT-registered Money Service Business (MSB) in Canada and continues to work with regulators on the road to becoming a registered Restricted Dealer.
All that shows Kraken’s commitment to providing a safe and secure crypto trading platform.
The Best Kraken Alternatives in Canada
If Kraken doesn’t work for you, or you feel like its regulatory fate in Canada hangs in the balance, you can look into the following Kraken alternatives.
Bitbuy
Bitbuy is a top Kraken alternative for Canadians looking to trade or invest in a select list of popular cryptocurrencies.
The platform offers about 40 crypto coins you can start trading and crypto staking for ETH, ADA, MATIC, SOL, ATOM, and DOT.
- Funding options: Interac e-Transfer, bank wire, crypto deposits
- Bitbuy fees: Fees are tiered into 3 levels based on your 90-day trading volume, ranging from 0.00%-2%. Fiat deposits are free.
- Promotion: Get a $50 bonus after making an initial deposit of at least $250.
Bitbuy Crypto Exchange
Get a $50 bonus if your initial deposit exceeds $250
Trade approx. 40 coins
Great for new & advanced traders
0% to 2% trading fee
Wealthsimple Crypto
Wealthsimple Crypto is a Canadian crypto app that offers commission-free trading of 50+ cryptocurrencies and doesn’t charge any extra deposit/withdrawal fees. It also offers crypto staking of ETH, ADA, and SOL.
- Funding options: Bank transfer, Interac e-Transfer, debit/credit card, wire transfer
- Fees: Charges an an-all-in-one transaction fee of 1.5%-2% applied as a hidden bid-ask spread on buy/sell orders
Wealthsimple Crypto
Trade several cryptocurrencies
Excellent trading platform
1.5% to 2% trading fee
Get a $25 bonus when you deposit $200+
VirgoCX
VirgoCX is a Canadian crypto platform offering 60+ cryptocurrencies, free deposits/withdrawals, and charges no extra trading fees.
- Funding options: Interac e-Transfer, credit/debit card, Bill Payment, wire transfer.
- VirgoCX fees: Charges an all-in-one bid-ask spread ranging from 0.5%-2.5%.
VirgoCX
Get a $20 bonus when you deposit $100
Great crypto broker for newbies
0.50% to 2.50% trading fee
Trade several popular coins
FAQ
Kraken can be used in many countries across the world, including Canada. So far, Kraken has 9M+ users in more than 190 countries.
Yes, Kraken works in Canada as a FINTRAC-registred MSB. It has also entered into pre-registration undertakings with the OSC as it works to become a licensed Restricted Dealer.
You can fund your Kraken account in Canada via wire transfer, e-Transfer, Etana Custody, ACH transfer, credit/debit card, or crypto deposits.
Disclaimer: Cryptocurrency is a volatile and speculative investment. If you decide to invest, we recommend you do your own research and only commit funds you can afford to lose. The author may own one or more of the crypto assets mentioned in this article.
