Kraken officials have just shared their plans of offering something new and unique to their users. The exchange officials have announced the launch of their own bank.
Kraken Launches its own Exchange
Kraken is known for being one of the most prominent, largest, and oldest cryptocurrency exchanges in the entire crypto industry.
Just recently, the officials at the exchange shared their plans of launching their own banking solution for the convenience of their users.
The exchange officials have also communicated the reason why they have decided to launch their own banking firm.
The regulatory scrutiny has been causing many problems for the cryptocurrency industry, especially for the crypto exchanges.
As these entities are directly linked with the clients and banks, they are impacted the most if regulators prohibited banks from interacting with the exchanges.
The situation has been growing extremely challenging for the cryptocurrency industry. The firms have been trying to come up with different solutions to the problem.
The exchanges such as Coinbase have switched from Silvergate Bank to Signature Bank to avoid facing any financial crisis.
However, Kraken has come up with its own solution and approach to the problem, as it wants to launch its own banking entity.
The announcement by Kraken’s Chief Legal Officer
Marco Santori recently dropped the news on the entire Kraken community, which was a huge surprise for the users.
Initially, there were just rumors that the exchange was in the process of coming up with a unique solution to banking problems. However, Santori has confirmed that they are working on launching their own bank.
They are currently working on the development and launch of their own bank which will be introduced very soon.
As per Santori, the regulatory authorities have grown very concerned about the existence of cryptocurrencies. It seems that they do not want them to be let loose, which is why they are imposing different kinds of restrictions on the industry.
They are not directly ordering the banks to stop dealing with crypto firms. Instead, they are issuing intimations and warnings to the banking solutions.
Given the market situations and circumstances, banks are listening to the regulators. Thus, they are moving away from facilitating crypto firms.
Therefore, it has become extremely important for crypto exchanges to come up with a reliable solution to the problem. They seem to have found it and they are confident that it is going to work out in favor of the crypto industry.
Kraken announced on March 1 that was no longer going to link itself with Signature Bank, which is a crypto proponent.
It is the third-largest exchange in the world of crypto in terms of market capitalization. The exchange’s move is going to prove very beneficial for the entire crypto industry.