Cryptocurrency exchange Kraken has secured approval from a state regulator in the US to launch a crypto bank under an SPDI charter. The San Francisco-headquartered firm has received formal notice from the Wyoming Division of Banking that the application of its subsidiary was accepted.
Kraken applied for a bank charter under Wyoming’s special-purpose depository institution law. It will tentatively do business under the name ‘Kraken Financial’.
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An SPDI bank charter permits Kraken to operate an independent bank that will reduce reliance on third-party financial institutions and allows the exchange to provide deposit-taking, custody and fiduciary services for digital assets.
“From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will enable Kraken clients in the U.S. to bank seamlessly between digital assets and national currencies,” a post on Krakens blog states.
In its first phase of operation, Kraken Financial will only offer accounts to U.S. residents.
Krakens expects to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets. However, it will be required to comply with all federal and state laws, including ‘know your customer’, anti-money laundering and related regulations. It will also comply with Wyoming’s SPDI and digital asset laws, which include requirements that fiat deposits be 100% reserved and meet the consumer protection standards.Suggested articles
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Wyoming has been developing its crypto initiative since 2018 when it announced plans to draft special-purpose banking legislation to cater to crypto companies. Now, the state already has a compr...