Kraken will soon launch its own crypto bank – The Cryptonomist
According to Kraken’s legal manager Marco Santorithe crypto exchange will soon be launched its own bank.
Kraken and the crypto exchange’s plans to launch their own bank soon
In an interview it comes out Marco SantoriChief Legal Officer at Kraken, confirmed the crypto exchange’s intentions to soon open their own bank.
Here is what Santori is said to have said in a podcast:
“Kraken Bank is coming, very soon. We’re going to have those ballpoint pens. We’re going to order thousands of them and put them on the desks of Wall Street banks everywhere. With our logo on them.”
Kraken seems really intent on moving ahead with plans to launch its own bank, though the difficult regulatory environment in the crypto sector.
In this regard, Santori again said:
“It’s really a sign of a rather unfortunate situation here in the United States. We have a regulatory environment that essentially forces users to use offshore exchanges that are happy to accept their business with just a VPN.”
Kraken and its bank after tough SEC rulings
The fact that Kraken is working on developing its own bank is also the answer to how it has been treated. crypto exchange had to shut down some of its chain effort services for US customers to resolve charges by the Securities and Exchange Commission that it violated securities laws.
To come to terms with this, Kraken and the SEC signed an agreement last month where the exchange was ordered to pay a fine of 30 million dollars.
Following this incident, the SEC also took action against other established industry players, again on charges of “violations of federal securities laws.”
And indeed, Binance also received the same accusations of allowing US customers to trade crypto without complying with the laws.
Santori’s speech relates somewhat to the thoughts of Kraken’s next CEO, Dave Ripley:
“Many American users will now go to services offshore. Companies that are not interested in a regulatory forward approach. Who are the losers in all this? The American people.”
Incoming CEO @DavidLRipley talking with @andrewrsorkin on the regulatory path forward for crypto in the US. pic.twitter.com/PTxWk5VgZ2
— Kraken Exchange (@krakenfx) March 2, 2023
The decision to leave Signature Bank
A few days ago, Kraken publicly announced that they had decided to withdraw the use of Signature Bank for certain financial transactions.
Essentially, via email, Kraken has already notified its users that non-business customers will no longer be able to make USD dollar deposits or withdrawals using Signature Bank.
This decision was made precisely because the bank seems to be making changes against those who trade in cryptocurrency. And indeed, Signature Bank has already announced that as of February 1, 2023, it will no longer support any of its customers to buy and sell amounts below $100,000.
Not only that, Signature Bank also stated that it would not reduce its exposure to the crypto sector, but not eliminate it entirely.
