Kraken Seeks Wider Crypto Adoption With Mobile Trading App Launch In US; Available on Apple & Android
Major US crypto exchange Kraken seeks to expand crypto adoption in the American nation with its mobile crypto trading platform.
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However, Kraken says it is not providing support for credit and debit card payments for the time being. US investors will only be able to buy crypto with their bank account.
Speaking on the new development, Kraken Chief Product Officer Jeremy Welch noted that this retail app is the exchange’s first attempt at supporting consumer crypto adoption in the US region. According to Welch, the new Kraken app uses a simplified and easy-to-use interface with a crypto newbie at heart. Kraken has offered a ‘PRO' version and ‘Futures' app for some time now, but this new app is targeted towards users that want a simple buy and sell option.
Adding further, Welch noted that the crypto boom of the last five months had seen Kraken experience exponential growth. According to him, the crypto exchange has seen a surge in its client base.
The Bitcoin exchange, which launched a year after fellow publicly traded US exchange Coinbase, is the fourth largest crypto exchange by trading volume. It currently boasts 7 million unique users.
The expansion into the retail investment circle follows a year-long boom in the crypto sector. Bitcoin, the poster child of the vilified crypto industry, has moved the industry into the global marketplace after surging 90% in 2021. Other crypto assets have also posted massive returns, with the second most valuable digital asset Ethereum growing 500% year-to-date.
Pointing out supported regions, Kraken said that all US states would be supported, excluding New York and Washington DC. This is due to the high regulatory costs in the regions. However, the Bitcoin exchange is licensed by the Financial Enforcement Network (FinCEN) as a money services business and says it is complying with laid-down regulations in the areas it operates.
Crypto Crackdown Imminent
Kraken's foray into retail crypto trading comes when calls for regulation in the crypto space are gradually gaining steam.
Speaking months before about the likelihood of this occurring with CNBC, Kraken CEO Jesse Powell said there is a growing tendency that federal agencies will regulate cryptocurrencies. According to Powell, virtual currencies are a “threat” to the established financial system.
And this is already materializing with the Securities and Exchange Commission (SEC) Chairman Gary Gensler noting in an interview that the crypto space needs to be regulated.
Echoing the same thoughts, new Office of the Comptroller of Currency (OCC) head Michael Hsu said in a written testimony that the agency is currently reviewing its prior actions in the crypto space. This was due to an interpretative letter issued by the former head and current CEO of Binance US Brian Brooks.