Crypto news

Kraken, the crypto exchange, intends to venture into US stock trading.

Kraken, the cryptocurrency exchange, is planning to expand its services by offering users the ability to trade stocks listed in the United States and exchange-traded funds (ETFs).

According to a Bloomberg report on September 27, the crypto exchange intends to launch these trading services in the United States and the United Kingdom in 2024 through its division called Kraken Securities.

To facilitate this expansion, Kraken would need licensing from the Financial Industry Regulatory Authority (FINRA) and financial regulators in the UK, which the exchange reportedly already possesses.

This move by the crypto exchange follows a similar initiative by FTX US, which announced plans for a stock trading platform that has since ceased operations.

While some platforms, like Robinhood, already offer both stock and cryptocurrency trading, it is less common for US-based digital asset exchanges to provide such diversified offerings.

Kraken, the crypto exchange

Kraken made significant announcements on September 26, revealing that it had obtained licenses in Spain and Ireland, allowing it to provide digital asset services in those countries.

However, the company is currently dealing with a civil suit filed by the Australian Securities and Investments Commission.

The suit alleges that Kraken failed to meet design and distribution obligations for one of its trading products.

Earlier this year, in February, Kraken entered into an agreement with the U.S. Securities and Exchange Commission (SEC) to settle charges.

As part of the agreement, Kraken agreed to pay $30 million in disgorgement, prejudgment interest, and civil penalties.

Additionally, the company discontinued its staking services and programs for clients based in the United States.

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