Kraken, the popular cryptocurrency exchange, is preparing to offer its users a new and exciting trading feature. Soon, they will be able to trade U.S.-listed stocks and exchange-traded funds (ETFs) immediately.
Bloomberg reported on Sept 27 that Kraken, a U.S.-based exchange, plans to expand its trading services to the United States and the United Kingdom in 2024. This expansion will be facilitated through their subsidiary named Kraken Securities.
Furthermore, to offer investment options beyond cryptocurrencies, they will need to obtain licenses from the Financial Industry Regulatory Authority (FINRA) in the U.S. and relevant financial regulators in the U.K. It is important to note that Kraken has already obtained these necessary licenses.
The cryptocurrency exchange allegedly made this decision approximately a year after FTX.US, which is no longer operational, announced its plans to launch a stock trading platform. While platforms like Robinhood already offer trading services for both stocks and cryptocurrencies, most digital asset exchanges based in the U.S. primarily concentrate on cryptocurrency-related offerings.
Kraken Faces Lawsuit From Australian Securities Commission
Kraken announced on Sept 26 that it recently acquired licenses in both Spain and Ireland to offer digital asset services. Furthermore, the company is currently facing a civil lawsuit initiated by the Australian Securities and Investments Commission. The lawsuit alleges that Kraken failed to uphold its design and distribution obligations for one of its trading products.
In Feb, Kraken reached an agreement with the U.S. Securities and Exchange Commission. They agreed to pay $30 million for disgorgement, prejudgment interest, and civil penalties. However, Kraken discontinued its staking services and programs for U.S. clients as part of this settlement. Cointelegraph contacted Kraken to gather their comment on the matter; however, as of the time of publication, they had not yet responded.
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