Kraken Charges Forward With Imminent Bank Launch Despite Regulatory Turbulence

Key Points:

• Kraken is undeterred by the challenging regulatory landscape and is continuing with its plans to establish its own bank, according to Marco Santori, the firm’s chief legal officer.
• Silvergate Exchange Network highlights the challenges faced by cryptocurrency firms in accessing traditional banking services.
• Kraken’s move to establish its own bank could potentially be a game-changer for the cryptocurrency industry.

Kraken, a prominent cryptocurrency exchange, is undeterred by the challenging regulatory landscape and is continuing with its plans to establish its own bank, according to Marco Santori, the firm’s chief legal officer.

During an episode of The Scoop podcast, Santori expressed concern that the banking industry’s cautious attitude could stifle innovation within the cryptocurrency industry. Santori pointed out that Silvergate, a crypto-friendly bank, recently shut down its widely used Silvergate Exchange Network due to concerns over capitalization. However, Santori reassured listeners that Kraken’s banking relationships are secure, with the exchange having a diverse banking group spread across the globe.

Despite the regulatory hurdles faced by the cryptocurrency industry, Kraken is forging ahead with its plans to establish a bank. Santori emphasized that the lack of access to traditional banking services has been a significant hurdle for the industry, with many crypto firms struggling to establish relationships with banks due to regulatory uncertainty. Kraken’s decision to establish its own bank could potentially solve this issue and provide a more stable financial infrastructure for the industry.

The recent closure of the Silvergate Exchange Network highlights the challenges faced by cryptocurrency firms in accessing traditional banking services. The network, which facilitated transactions between cryptocurrency exchanges and their customers, was shut down due to concerns over overcapitalization. However, Santori emphasized that banking relationships are diverse and spread across the globe, mitigating the risk of any single bank’s failure impacting the exchange.

Kraken’s move to establish its own bank could potentially be a game-changer for the cryptocurrency industry. By creating a more stable financial infrastructure, Kraken could provide a safer and more secure platform for cryptocurrency investors and traders. However, the regulatory hurdles faced by the industry remain a significant challenge, and it remains to be seen how successful Kraken’s banking venture will be in the long term.

Despite the regulatory challenges faced by the cryptocurrency industry, KK is moving ahead with its plans to establish its own bank. Santori emphasized that Kraken’s banking relationships are secure, with a diverse group of banks spread across the globe. The establishment of Kraken’s own bank could potentially solve the industry’s lack of access to traditional banking services, providing a more stable financial infrastructure for the industry.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News