Kraken plans to set up its own bank despite difficult legal situation

Kraken’s Chief Legal Officer shared that the exchange plans to set up its own bank. And Kraken Bank will be launched soon, even though the US regulatory landscape is not too friendly for the crypto industry.

Kraken plans to set up its own bank despite difficult legal situation

Speaking on The Block’s The Scoop podcast, Kraken’s Chief Legal Officer Marco Santori affirmed: “Kraken Bank is on track to launch, very soon. We would order ballpoint pens with the Kraken logo engraved on them and put them on the desks of Wall Street banks. Our logo is everywhere.”

A bank that comes from the field of cryptocurrency has always been considered an “impossible task”, especially in a time when many countries around the world have tightened regulations on crypto.

Especially in the US, where the Kraken exchange is stationed. As Cointelegraph reported last month, the US Securities and Exchange Commission (SEC) fined Kraken $30 million with a permanent staking service ban. The SEC Chairman then cited Kraken as an example of “warning” crypto companies that intend to open a similar staking service.

Santori did not provide further information about the settlement with the SEC. But this Legal Director affirmed that the staking segment only accounts for a small part of the exchange’s total revenue. Kraken neither admits nor denies any of the allegations in the SEC complaint. “Of course, the ban affects our product mix quite a bit in the US market. In addition, the SEC’s move will directly push Americans to seek staking services of riskier foreign exchanges. This is really an unfortunate situation. We Americans live under a regulatory environment that essentially forces users to use foreign exchanges. And those exchanges are ready to provide services to any user who just needs a VPN”, he stated.

It is not only crypto companies that are targeted, but also banks with exposure to crypto are under pressure from US authorities. One of the banks that is a partner in handling fiat deposits for major crypto platforms, Silvergate Bank, is falling into a severe “liquidity crisis”, forcing the shutdown of the remittance network.

Another friendly bank, Signature Bank, has reduced its crypto exposure by $10 billion, partly because of the impact of the FTX crash. Still, Santori said Kraken’s banking relationships are secure and that the exchange has “diverse global” banking partners.

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