Crypto Exchange Kraken Inching Closer To Open Its Own Bank

• US Kraken customers would be the ones to get services first.
• The crypto exchange settled with the US SEC for $30 million.

Kraken, a struggling cryptocurrency exchange, is apparently edging closer to its concept of founding its own bank. The exchange has made this decision after receiving a penalty from the U.S. Securities and Exchange Commission (SEC) for failing to register its crypto asset staking programme.

According to a podcast appearance by Kraken’s Chief Legal Officer Marco Santori, the debut of the Kraken Bank is imminent. He then joked that Kraken was planning to have thousands of pens with tiny ball chains printed up with their brand and attached to the walls of Wall Street banks.

$30 Million Settlement With SEC

Moreover, Kraken has already announced on its website that the rollout of its Bank would begin in phases in 2022. It was also said that US Kraken customers would be the ones to get services first. In the meanwhile, in 2023, the crypto exchange settled with the US SEC for $30 million.

Two Kraken entities were highlighted in the announcement by the US SEC because they had reached an agreement to stop issuing and selling Securities via a digital asset staking programme. It further said that the exchange has been giving and selling its services for staking crypto assets since 2019.

When asked for comment on Kraken’s Settlement with SEC, the company’s legal officer declined. He went on to say that staking contributed just a small amount to Kraken’s overall earnings. Contrarily, the back-and-forth neither confirms nor rejects any of the allegations made in the complaint. He continued by saying that the lawsuit will not alter the company’s product offerings in America.

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