Kraken, a well-known cryptocurrency exchange, is broadening its regulatory reach by purchasing TradeStation Crypto.
TradeStation Crypto To Unlock New Opportunities
TradeStation Crypto represents the digital asset division of TradeStation Group, which is affiliated with Monex Group. According to a representative from Kraken, this deal is aimed at strengthening Kraken’s presence in the US market. The spokesperson expressed optimism about the acquisition, believing it will pave the way for expanded growth and innovative new offerings in the U.S. for Kraken.
Before this time, no public mention has been made by either of the parties about the takeover.
Buying TradeStation is a significant acquisition for Kraken because the former holds money transmitting licenses in over 40 US states. However, this was a challenging time for Kraken earlier in the year when they were required to pay a $3 million fine to the US Securities and Exchange Commission (SEC) due to their illegal sale of unregistered crypto-lending products.
The SEC identified TradeStation’s crypto interest program as an investment security, making it necessary for the company to register with federal authorities. However, the Florida firm neglected this requirement. As a result, the SEC took action, causing a halt to the service approximately two years ago.
Significant: The SEC and the North American Securities Administrators Association (NASAA) have reached a $3 million settlement. This development led TradeStation’s parent company to declare their departure from the cryptocurrency market.
Francis Suarez’s goal to make Miami a major crypto center found significant expression through TradeStation. The company played a key role in the creation of Miami Bull, an impressive 11-foot, 3,000-pound statue that was officially unveiled by Suarez.
Kraken Celebrates Other Big Wins
While obtaining TradeStation is just one action, the crypto exchange has made this move among several recent ones to secure a presence in the U.S. markets.
Last month, Kraken introduced the Qualified Custody Solution, specifically designed for the US market. With the growing importance of custody services in the digital asset sector, this new offering caters to the heightened demand.
The cryptocurrency exchange has recently obtained approval from the Dutch Central Bank (DNB) as a Virtual Asset Service Provider (VASP), allowing it to expand its operations into new regions.
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2024-04-19 00:35