Kraken Ventures Beyond Cryptos: Traditional Stocks on the Horizon?
The Kraken, a behemoth in the crypto ocean, seems to be spreading its tentacles into unfamiliar waters. Renowned as a leading US cryptocurrency exchange, whispers in the financial corridors suggest Kraken is pondering over the inclusion of conventional stocks and ETFs into its treasure trove.
Bloomberg Law, leaning on unnamed sources, highlighted this as Kraken’s maiden voyage outside its crypto comfort zone. If rumors hold water, “Kraken Securities” could soon become a thing, becoming the gateway for US-traded stocks and ETFs, with 2024 earmarked as the launch year, subject to the nod from regulatory watchmen.
While Kraken remains tight-lipped, a spokesperson hinted at the brand’s evolution to Reuters, “We’re on a mission to evolve and amplify our offerings. Speculations aside, we want our users to experience a richer, unbroken Kraken universe.”
Kraken Finds European Shores Welcoming
This move isn’t isolated. Kraken, with its ever-expanding ambitions, recently netted approvals to anchor in several European ports, including the Spanish and Irish coasts. Acknowledgements like the e-money institution (EMI) license from Ireland’s central financial authority and the VASP registration in Spain bolstered Kraken’s European presence, a journey that began with similar permissions in Italy.
Curtis Ting, Kraken’s Global Operations Captain, expressed his optimism, “Europe’s progressive crypto view lays the bricks for our growth. We’re thrilled to dive into Ireland and Spain’s bubbling fintech pools, with an eye on wider European waters.”
The UK, too, has opened its gates to Kraken with the necessary regulatory compass in hand.
Kraken and The Regulatory Storms
It’s not all smooth sailing for Kraken. Back home, it faced some rough seas amidst a US regulatory tempest targeting the crypto industry. A recent episode saw Kraken tangled in IRS nets, with a Californian court demanding a deep dive into user data for a tax evasion investigation. The mandate? Spill the beans on users trading over $20,000 annually, revealing everything from names to email details.
Earlier, in a chilly February, a $30 million penalty forced Kraken to batten down its crypto staking hatches, settling with the SEC over supposed securities law infringements.
The Kraken’s journey, filled with conquests and challenges, promises to keep the financial seas intriguing.