Cryptocurrency exchange Kraken has made the announcement that it would be launching its own banking system “very soon.” The bank’s primary emphasis in the beginning will be on expanding its service offerings to the customers it already has in the United States, before expanding into the foreign market.
Kraken is advancing with plans to launch its own bank despite a challenging regulatory environment. Marco Santori, the Chief legal officer of Kraken, stated, “Kraken Bank is very much on track to Launch, very soon.”
The official tweet says, “Kraken bank is not open yet but on its way!”
It went on to state that SPDI banks were required to have entire reserves, which meant that user cash would not be loaned out without the users’ prior consent. According to what was said on the website, all of the assets would be maintained on hand and will be accessible either as cash or as cash equivalents that carry the least amount of risk.
Even in the event of a hypothetical “bank run,” Kraken Bank will be prepared with considerable capital reserves as well as surpluses of its own capital to cover the entire amount of all of its customers’ accounts.
Kraken has, as of late, discontinued its stacking services in the United States as a consequence of the security requirements enforced by the Securities and Exchange Commission (SEC). Although it participated in the settlement by paying $30 million.
In February, Gary Gansler, the chairman of the United States Securities and Exchange Commission, said that the Kraken settlement ought to “put everyone in the market on notice.”
Compiled by Coinbold
