Kraken, a popular US-based cryptocurrency exchange, has announced plans to launch its own bank. This development comes at a time when the crypto sector is facing increasing regulatory pressure, particularly in the US. Kraken’s Chief Legal Officer, Marco Santori, has confirmed that Kraken Bank is on track to launch soon, and this move could have significant implications for the industry.
As the third largest crypto exchange by volume on CoinMarketCap, Kraken is a major player in the industry. However, recent challenges have put the company under the spotlight. Kraken has recently settled a case with the Office of Foreign Assets Control (OFAC) over sanctions violations, and the company is now facing scrutiny from the SEC over whether it offered unregistered securities to American clients.
Kraken’s decision to launch its own bank is a response to these challenges and could provide a solution for crypto traders looking for a reliable banking partner. The move could also help Kraken to distance itself from the regulatory challenges facing the industry and establish itself as a leader in the space.
Despite the risks, Kraken’s decision to launch its own bank is a bold move that could have significant implications for the future of crypto trading. By establishing its own banking institution, Kraken is showing that it is committed to providing a secure and reliable platform for traders, even in the face of increasing regulatory pressure.
As the crypto industry continues to evolve, it is clear that companies like Kraken will play a key role in shaping its future. Whether Kraken’s move to launch its own bank will pay off remains to be seen, but one thing is certain: the industry will be watching closely to see how this bold move plays out.