Wyoming Banking, which is known as “crypto and blockchain friendly state” sanctioned Kraken Inc. to transform into Kraken Financial – a full fledge (de novo) banking institution on last Wedensday. David Kinitsky, who is the managing director of Kraken Inc. and the chief executive officer of Kraken Financial, said that by becoming a banking institution they will now be entitled to gain access within the federal payments infrastructure.
After 2006, Kraken Financial became the first crypto-based exchange to have received a duly sanctioned banking charter.
During an interview Mr. Kinitsky explained that at the time when cryptocurrency was introduced in the financial world there were no rules at all and due to non-existence of these rules MTGox and DAO flourished. But soon after the end of MTGox and DAO saga, it became apparent that there is immediate need of rules but the drafting of rules and their application was quite confusing and make it to loo impossible.
However, when the law came into being, most of the crypto based exchanges from and within US were compressed and they find it really hard to comply with the rules. Each state had its own rules and the fact that many exchanges had their exchanges in different territories made the things very confusing and upsetting to the exchanges. Though the New York successfully issued Bitlicense policy and exchanges working within the system were asked to obtain licenses. However since the introduction of the policy, only a handful of exchanges, approximately 25 only have been granted licenses under the policy so far to operate within the financial hub of USA.
According to news sources an interview has been scheduled for today in which Mr. David Kinitsky of Kraken Financial will appear and discuss the things which have helped Kraken Inc. to become a banking institution and what changes this transformation has brought in for Kraken. He will also discuss what it feels like to be the first crypto exchange firm turning into a bank and what is the future plans and strategies of Kraken Financial regarding its crypto exchange business as well as the future of its customers.