Kraken Confirms Imminent Launch Of Crypto Bank In The US Amid Regulatory Issues

Kraken, one of the largest centralized cryptocurrency exchange platforms in the United States, confirmed that it would soon launch its crypto bank in the country despite the recent regulatory troubles it experienced, courtesy of the U.S. Securities and Exchange Commission (SEC).

Last month, Kraken reached a settlement with the SEC and agreed to pay $30 million in disgorgement, civil penalties and prejudgment interest and ceased offering its crypto staking program for clients in the U.S.

But, it looks like the crypto exchange platform is committed to continue practicing its business-as-usual approach despite the continuing crackdown of financial regulators on cryptocurrency businesses operating in the country.

In fact, Kraken's chief legal officer Marco Santori recently confirmed on The Scoop podcast that the platform's plan to launch the Kraken Bank in the United States is still happening.

"Kraken Bank is very much on track to launch, very soon," Santori said, adding, "We're going to have those pens with the little ball chains. We're going to order thousands of them and attach them to the desks of Wall Street banks everywhere. With our logo."

Kraken has been working on this project for years and was able to secure the approval of the State of Wyoming to create a Special Purpose Depository Institution (SPDI) in 2020.

The crypto exchange platform said that its soon-to-launch initiative will make it "the first-ever" digital asset company in the U.S. to receive a bank charter recognized by both federal and state laws.

Kraken Bank, according to its mother company, will be the first regulated crypto bank to offer a wide range of services, including "comprehensive deposit-taking, custody and fiduciary services for digital assets."

Aside from confirming that the launch of Kraken bank is on track despite it facing a delay when it failed to roll out in its initial schedule of 2021, Kraken's chief legal officer also addressed the ongoing crackdown of financial regulators on various businesses in the crypto industry.

"We're returning to an era where banks are going to be very cautious as to what accounts they open," Santori said.

He continued, "Wall Street is going to be fine. Kraken and Coinbase are going to be okay. But the guy or gal who has a new idea about how to provide infrastructure to the crypto economy, it's going to be a really tough road over the next few years for them. No question."

Kraken is considered the third-largest cryptocurrency exchange platform in the world and had an estimated value of approximately $10.8 billion as of mid-summer last year.