Cryptocurrency exchange Kraken has taken another move towards expanding its regulatory licensing with the acquisition of TradeStation Crypto.
TradeStation Crypto To Unlock New Opportunities
TradeStation Crypto is the digital assets unit of TradeStation Group which is part of Monex Group. A Kraken spokesperson confirmed that the transaction is part of the company’s efforts to accelerate its United States presence. He was also very positive about how the acquisition will unlock further growth and new product opportunities for Kraken in the U.S.
Before this time, no public mention has been made by either of the parties about the takeover.
For Kraken, buying TradeStation is a big deal as the latter owns money transmitting licenses from more than 40 U.S. states. However, the crypto broker hit a tide earlier this year when it had to pay $3 million in penalties to the U.S. SEC for the unlawful sales of unregistered crypto-lending products.
For context, the SEC described the TradeStation program that offered investors interest earnings from their crypto deposits as a security. It is therefore required that it is registered under the federal laws but the Florida-based firm failed in this regard. Consequently, the SEC intervened, leading to the suspension of service about two years ago.
Noteworthy, the $3 million fine is a settlement for both the SEC and the North American Securities Administrators Association (NASAA). This setback prompted the parent firm TradeStation to announce a withdrawal from crypto.
TradeStation was a pivotal part of the physical manifestation of Francis Suarez’s ambition to transform Miami into a crypto hub. The firm was in charge of commissioning Miami Bull, the 11-foot, 3,000-pound statue that was unveiled by Suarez.
Kraken Celebrates Other Big Wins
On the other hand, the acquisition of TradeStation is only one of the steps that the crypto exchange has taken in recent times to establish its foothold in the U.S.
Just last month, Kraken unveiled its Qualified Custody Solution tailored for the U.S. market. This new offshoot addresses the increased demand for custody solutions which has become very important in the digital asset ecosystem.
As regards its expansion to other regions, the cryptocurrency exchange recently successfully secured a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB).
The post Just In: Kraken Expands US Presence With TradeStation Crypto Buyup appeared first on CoinGape.
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