The Wyoming Banking Board just voted to approve Kraken, a San Francisco-based cryptocurrency exchange, as a Special Purpose Depository Institution (SPDI). In other words, it is the first crypto exchange in the country on the verge of becoming a bank because CoinDesk reports.
“By becoming a bank, we gain direct access to the federal payments infrastructure and we can more easily integrate banking and financing options for customers,” said David Kinitsky, CEO of Kraken and CEO of the new company. Kraken Financial. CoinDesk.
If its efforts are successful, Kraken Financial will no longer have to manage a variety of different rules to regulate digital assets, depending on the state.
Wyoming’s SPDI banks, first established in November 2019, are still different from regular domestic banks. They never have full legal ownership of digital assets, but are legally permitted to own them. Any assets following bankruptcy must be returned to customers.
Kraken has big plans now that it’s been approved. “We would expect to offer a multitude of new products as we go into operation,” said Kinitsky CoinDesk. “It ranges from qualified custody for institutions, digital asset debit cards and savings accounts to new types of asset classes.”
In July, the U.S. Office of the Comptroller of the Currency released a decision allowing domestic banks to provide custodial services to cryptocurrency startups.
Karen Financial is now focused on strengthening its teams and preparing to take full charge of customer services for its operations.
READ MORE: Kraken becomes the first crypto exchange to become a U.S. bank [CoinDesk]
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