Kraken, a prominent US-based cryptocurrency exchange, is reportedly considering expanding its product offerings to include traditional stocks and exchange-traded funds (ETFs).
The move marks Kraken’s first push beyond the realm of crypto assets, Bloomberg Law reported, citing people familiar with the matter.
As part of the plan, the exchange intends to launch a new branch called Kraken Securities, through which it would sell US-traded stocks and ETFs.
The service is expected to be rolled out sometime in 2024, pending regulatory approvals.
While the company has not officially confirmed the news, a spokesperson for Kraken told Reuters that they are committed to expanding and enhancing their offerings.
“While we can’t comment on rumors or speculation, we’re looking to broaden and enhance our offering so clients continue to have secure and seamless access to Kraken’s full product suite.”
Kraken Receives Approval to Operate in EU Countries
This potential expansion comes on the heels of Kraken receiving authorization to operate in several European countries, including Spain and Ireland.
As reported, the exchange has obtained an e-money institution (EMI) license from the Central Bank of Ireland, while also successfully registering as a virtual asset service provider (VASP) in Spain.
The move came after it had already obtained VASP licenses in Italy and Ireland.
“We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence,” Curtis Ting, Kraken’s Vice President for Global Operations, said.
“In both Ireland and Spain, we are excited to become part of their vibrant local fintech sectors. We also look forward to continuing our investments in Europe more broadly.”
Furthermore, Kraken has obtained the necessary regulatory permit to operate in the United Kingdom.
Meanwhile, the exchange has also been under regulatory pressure in the US amid a recent crackdown on the crypto industry.
Back in July, Kraken was ordered by a judge to submit a vast amount of user information to the Internal Revenue Service (IRS) for an investigation into potential tax evasion.
The United States District Court for the Northern District of California issued the order, stating that Kraken must provide account and transaction details to the IRS to determine whether any users have underreported their taxes.
Under the order, Kraken is required to disclose information about users who engaged in transactions exceeding $20,000 within a calendar year.
This includes their names (real or pseudonyms), birthdates, taxpayer identification numbers, addresses, phone numbers, email addresses, and other relevant documents.
Moreover, in February, the crypto exchange had to close its crypto staking service and pay a $30 million fine to settle with the SEC over allegations of securities law violations related to its staking service.
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