Amid increasing regulatory pressure on the US local banks, Kraken decided to launch its own Bank.
Kraken is a popular crypto exchange. This exchange was founded in 2011 and right now this exchange is ranking at 3rd position in the Crypto sector by 24-hour crypto trade volume on its platform.
From 2018 to 2023, Kraken faced several regulatory hurdles. In a recent dispute with the United States Securities and Exchange Commission (SEC), Kraken paid $30 million as a fine.
On 6 March 2023, Kraken’s chief legal officer Marco Santori appeared in The Block’s Frank Chaparro on The Scoop podcast.
Through the podcast, the Kraken officer confirmed that Kraken is very near to launching its own Bank.
“Kraken Bank is very much on track to launch, very soon…(..).We’re going to have those pens with the little ball chains. We’re going to order thousands of them and attach them to the desks of Wall Street banks everywhere. With our logo,” the Kraken officer said.
In the recent case settlement with the SEC agency, the Kraken officer denied to comment about the case but confirmed that Kraken’s crypto staking service is basically a very small portion of its revenue but now US crypto Investors will move toward offshore crypto staking, as the SEC agency banned Kraken Crypto staking services.
Problem with Banks in the Crypto sector
No doubt that the Crypto sector is still in the early phase of Innovations but there is a huge to come. In the current situation, it is a good opportunity for all the new banks to establish their business & generate a better amount of revenue and also several US banks showed significant Inclination toward crypto companies as a banking partner but 2022 brought several challenges for the US-based Banks.
After the bankruptcy of Several crypto companies last year, the majority of the Banks in the US started to face regulatory pressure.
Recently the most popular Bank in the Crypto sector “Silvergate Bank” announced that the company will show significant loss in its 2022 financial report, as multiple crypto companies filed for bankruptcy.