Kraken Launches US Crypto Bank Amid Regulatory Issues

Notwithstanding the U.S. Securities and Exchange Commission’s (SEC) recent prohibition on the exchange’s staking service, US-based crypto exchange Kraken is creating a new crypto bank in Wyoming.

On Twitter, Kraken Help informed a user that the Kraken Bank is still under development and would first serve users in the United States.

“The product will first be accessible to current Kraken customers in the United States, with further worldwide growth possible.”

Kraken said it would launch a cryptocurrency bank in 2020 under the legal category of “special purpose depository institution” (SPDI).

“Kraken has always been a financial pioneer. Today we are forging a new path by establishing a crypto bank in Wyoming.

Kraken Financial was its previous name, but owing to tremendous demand, it will now be known as Kraken Bank. We are the first crypto firm to get a state banking charter in the United States. SPDIs are banks with “forward-looking regulatory frameworks,” according to Kraken.

Kraken Bank CEO David Kinitsky Says, “We are happy to operate in a state where our philosophy and beliefs are so compatible. Wyoming is an exceptional and shining example of how careful regulation may encourage innovation among FinTech firms.”

The bank intends to provide custody of digital assets, staking services, financing services, wire transfers, debit cards, “improved” crypto custody services, and a mobile banking application. The SEC ordered Kraken to cease its staking services last month, citing a breach of securities law.

Also Read: The CBDC “Icebreaker” Initiative Has Been Completed, According To The Bank For International Settlements

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