Kraken to Debut Trading Services for US Stocks and ETFs
- Kraken has decided to debut trading stocks and ETFs for customers in the UK and the US.
- The exchange will offer stock and ETF trading services in the countries by 2024.
- The firm is trying to get licensed by the US Financial Industry Regulatory Authority and the UK regulators.
- Kraken recently announced that it had acquired licenses from regulators in both Spain and Ireland.
Prominent crypto exchange Kraken has revealed plans to debut trading services for US-listed stocks and exchange-traded funds (ETFs), according to a new turn of events. The digital asset trading platform is now focused on branching out to offer stock and ETF trading services in the United States by 2024 while trying to get licensed in the region.
According to a report from Bloomberg, Kraken aims to enter the US stock and ETF trading markets by 2024 with the goal of expanding operations and entering other businesses as well. Interestingly, a similar step was taken by the bankrupt crypto exchange FTX under the leadership of Sam Bankman-Fried, also known as SBF in the crypto space.
Also, as part of its expansion plans, Kraken has also decided to acquire a broker-dealer license from the United States Financial Industry Regulatory Authority, but the process has yet to be finalized by the regulator. The firm will also launch this service in the United Kingdom and the US via a new business venture called Kraken Securities. The crypto exchange is also looking to acquire licensing from the financial regulators in the UK.
It is important to mention here that FTX US, the American arm of the bankrupt crypto exchange, announced almost a year ago that it would allow US-based users to trade stocks and ETFs, gaining a first-mover advantage. However, soon after, the exchange filed for bankruptcy in November 2022, and in December 2022, SBF was accused of fraud and other charges by US regulators.
Interestingly, Kraken recently announced that it had acquired licenses from both Spain and Ireland related to offering digital asset services. However, the firm is also facing a lawsuit from the Australian Securities and Investments Commission (ASIC). The regulator claims that the exchange failed to comply with design and distribution obligations for one of its trading products.
As reported earlier by Bitnation, Kraken has recently been ordered by a court to provide customer data like blockchain addresses and transaction hashes to the Internal Revenue Service (IRS) for customers that have completed transactions totaling more than $20k in a year.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
