Bitcoin Exchange Kraken Expands To Canada With the United States Next

The company behind the exchange’s expansion to Canada is Vogogo, a financial compliance company specializing in the digital currency industry. Vogogo recently raised $12.5 million through a financing round led by Beacon Securities, Clarus Securities and Salmon Partners. Having integrated their Know-Your-Customer (KYC) and Anti-Money Laundering (AML) compliance solutions into Kraken’s exchange platform, the exchange is now fully compliant and able to operate in the country.

Kraken, which is based in San Francisco, was one of the earliest bitcoin exchanges, including in the US. They were also one of the first to leave their home market in order to service markets in Europe and Asia, where the startup found regulatory environments to be much clearer and friendlier. The company recently announced its interests in operating in North America once again, when they hired their first Chief Compliance Officer Howard Bernstein. The new CCO has spent 20 years dealing with US regulations in emerging financial industries.

"The Kraken team is undoubtedly one of the most talented, sophisticated and capable crypto exchanges in the industry and together we share a commitment to solidifying the global crypto ecosystem.”
— – Geoff Gordon, Vogogo CEO

Gordon went on to say, “their level of diligence in selecting partners speaks to the reputation Vogogo has gained within the industry. We’re excited, but perhaps more importantly, we are focused on working with Kraken and playing our part in enabling and accelerating their growth. We will continue to provide secure, effective and compliant access to global banking and payment networks allowing Kraken to look forward and focus on being the very best at their business.”

Beyond Canada, the startup hopes to soon expand into United States, which has garnered a reputation for being a tough place for bitcoin companies to find banking partners, something Kraken knows all too well. Other than China, the United States is the largest market for bitcoin and digital currency trading, with a volume that dwarfs that of Europe’s, where Kraken currently leads the market. Kraken CEO Jesse Powell has admitted numerous times that by staying out of their home market the firm has likely lost a lot of business and money. Though the exchange has yet to say, Vogogo will likely be helping the startup enter the US market as well.

“We see a lot of opportunity for Kraken in Canada and we’re counting on Vogogo’s expertise in risk management and payment processing to make it possible for Canadians to move their dollars safely and efficiently to and from Kraken.”
— – Jesse Powell, Kraken CEO

Powell went on to say, “we’re looking forward to providing fast settlement and liquidity that will enable the Canadian market for bitcoin and bitcoin businesses to flourish.”

BitStamp, another European exchange, also recently partnered with Vogogo, and is looking to beef up its compliance efforts in Canada and the US. Unlike Kraken, BitStamp has chosen to operate in the countries despite digital currency’s murky legal status in region, but with the new integration the startup hopes to gain access to the Automated Clearing House (ACH) system and other bank settlement options, expanding their customers’ payment options.