The staggered rollout of its Bank service in 2022 was already indicated on the website of the cryptocurrency exchange Kraken.
Despite a challenging regulatory environment and several charges of breaking securities laws by the US Securities and Exchange Commission, Kraken is still committed to launching its bank.
The launch is proceeding as planned, according to Marco Santori, Chief Legal Officer at Kraken. He even revealed his plans to purchase tens of thousands of pens with tiny ball chains connected that will be given to Wall Street institutions and imprinted with the Kraken emblem.
The corporation is moving through with its aspirations to build its banking institution despite regulatory roadblocks.
Establishing a new bank from the cryptocurrency business is a risky move given that the sector is still dealing with the fallout from FTX’s demise. In the last several weeks, there have been a number of enforcement actions and rising regulatory uncertainties.
The $30 million fine imposed as part of the Kraken settlement, according to Gary Gensler, the SEC Chair, should serve as a warning to everyone in the market.
Santori declined to go into specifics when questioned about the SEC settlement but acknowledged that staking only made up a small portion of Kraken’s earnings.
He added that Kraken had not confirmed or rejected any of the claims made in the lawsuit.
Authorities prioritize the current state of cryptocurrencies
Santori asserts that Kraken has reliable banking connections with a large range of banks all over the world. He did, however, also highlight how banks are becoming more cautious, which could stifle innovation in the crypto industry.
Santori thinks that the world is headed back toward a time when banks will be extremely cautious about opening accounts, making it challenging for innovative ideas to support the infrastructure of the cryptocurrency industry.
It will be difficult for those with original ideas, even though well-known businesses like Wall Street, Kraken, and Coinbase might not be impacted. He made it clear that there is no covert organization in Washington, D.C., that works to oppose cryptocurrencies.
He did, however, recognize that a group of regulators have similar views on cryptocurrencies. The legal head of Kraken says that while cryptocurrencies’ possible future developments are important, their current condition is more significant.
