Kraken Leader Jesse Powell Claims of Altcoin Season Hype Will Be Fading Away in No Time
The CEO of Kraken, Jesse Powell opened up in an interview about the matters concerning difficulties being faced by Altcoins. Powell gave his opinion explaining the recent pattern of cryptocurrency markets. He stated how Central banks are not very serious about working together with digital asset corporations.
There are a few uncertainties and risks that are usually associated with these entities. The unfortunate part is that these risks outweigh the rewards that the entities have. Jesse Powell said in the interview that his company had to move its launching to six months later in order to meet the KYC banking rules. He said that in the past, banks would submit a request for licenses from exchanges in order to open an account. This was to ensure KYC compliance with their set of regulations.
According to the CEO, US banks did not concern themselves with crypto exchanges but are instead focused on compliance and other non-existing issues. The problems kicked in when the exchange activities experienced growth and started to exceed what the banks could handle. Powell said,
“They got worried about compliance and issues that were not really existing. Just the concern about optics, like the perception that their regulators would have to deal with a significant amount of crypto business. Our volume of transactions was coming through banks and it outgrew the bank’s capacity.”
Kraken’s Success Story
Powell talked about his company’s success and stated that the exchange from the beginning kept up with the communications with it's users and had great customer services. In 2014, Kraken recorded a drop in the number of new clients during the Mt Gox hack. Powell stated that this has adjusted as the users are consistent every time a price swing comes in the cryptocurrencies market.
“We definitely have way more demand, to go long Bitcoin, but we’ve only got so many dollars in the system. You know, the margin pool for borrowing dollars to buy Bitcoin is, is constantly being exhausted. Um, which I think is good. People are bullish.”