San Francisco-based cryptocurrency exchange Kraken is close to launching its own bank in the U.S., weeks after paying $30 million to settle an SEC claim for offering unregistered securities. It is said that
Kraken has already received approval from US state regulators to launch a crypto bank under the SPDI Charter. He applied for bank authorization under the Wyoming Special Purpose Depository Institutions Act.
The SPDI Banking Charter will allow Kraken to operate an independent bank that reduces its reliance on third party financial institutions and allows exchanges to provide deposit taking, custody and custody services for digital assets.
“Kraken Bank is well on its way to launching soon. We’ll paste it,” Marco Santori, Kraken’s chief legal officer, told The Block.
As part of the settlement agreement, Kraken has closed its U.S. crypto staking operations. According to Santori, it was only a small portion of the exchange’s revenue. However, the SEC claims Kraken holds more than $2.7 billion of his assets for U.S. clients and generates about $147 million in revenue.
Additionally, Kraken was fined $362,158 in November to settle civil liability for apparent violations of US sanctions against countries like Iran. Authorities have investigated Kraken’s dealings with Iranian users since 2019. Additionally, the company did not notify OFAC of these transactions and did not voluntarily disclose any violations of U.S. sanctions.
“This shows that we are in a very unfortunate situation here on the mainland. We have a regulatory environment that forces us to do so,” he added.
Stablecoin issuer Circle is also in talks with U.S. regulators and aims to become the fourth crypto-native company to win the Federal Trust Charter through the Office of the Comptroller of the Currency (OCC). .
Circle hopes to act as a compliant bridge to the US dollar payment system and its stablecoin USDC. However, you must comply with all federal and state laws, including “know your customer,” anti-money laundering, and related regulations. It also complies with SPDI and digital asset laws, including requirements to secure 100% of fiat deposits and meet consumer protection standards.