Kraken Becomes The First Crypto Exchange To Get Banking License

Kraken becomes the first crypto exchange to receive a US Banking license that was issued by the Wyoming Banking Board as we are reading further in today’s crypto news.

The Wyoming Banking Board voted to approve the application for special purpose depository institution charter of the Kraken crypto exchange. This way, Kraken becomes the first exchange to officially get a license and operate as a chartered bank in the United State since 2006, according to a NASDAQ report.

Now, Kraken can get access to the existing federal payments infrastructure which will allow the exchange to integrate funding and banking options to the clients, according to the managing director of the exchange and CEO. By becoming a bank, the exchange will get access to federal payment infrastructure and they can now integrate funding and banking options for the customers, as per David Kinitsky.

Furthermore, the license will allow Kraken to provide the services to clients in multiple jurisdictions and will not have to deal with the state-by-state compliance part. The news about the license came two months after the Office of the Comptroller of the Currency in the United States issued a letter allowing the US federal banks to offer crypto custody services. The OCC revealed that the approval limits banks to a specific type of crypto custody so the financial institutions can store copies of the private keys of their customers and can also hold the assets in the cold storage facilities.

Also, as recently reported in our bitcoin news, After recording massive strength in the BTC market at the end of the previous month, Kraken predicts that Bitcoin will see more price gain of about 200% over the upcoming weeks and months. A Major United States-based exchange released a report predicting that Bitcoin will rally by between 50% and 200% in the upcoming few months. The report noted that Bitcoin posted a 21-month low for the volatility at the end of July of 23% and stated that Bitcoin’s 12 historic volatility lows have been followed by a rally of about 140% on average.

NEW: Kraken Wins Bank Charter Approvalhttps://t.co/NnJTMWQJQZ

— Kraken (@krakenfx) September 16, 2020

Kraken predicts that upward momentum produced by Bitcoin at the end of the past month will continue for a few months that are upcoming. The exchange emphasized that the latest rally resulted in the second-strongest July for the BTC price performance since 2011 noting that the past month was usually the weakest month for the number one cryptocurrency.