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How Does Kraken’s New Crypto Bank Work?

Adam B. Levine
·2-min read

This week Kraken Financial became the first crypto company to receive a banking charter under Wyoming’s Special Purpose Depository Institution statute. On this Speaking of Bitcoin episode, join CEO David Kinitsky for a look at what it all means and how it’ll work with hosts Adam B. Levine, Andreas M. Antonopoulos and Stephanie Murphy.

For more episodes and free early access before our regular releases, subscribe with Apple PodcastsSpotifyPocketcastsGoogle PodcastsCastboxStitcherRadioPublicaiHeartRadio or RSS.

This episode is sponsored by Crypto.comBitstamp and Nexo.io.

From MTGox to crypto banking

Related: Bitcoin News Roundup for Sept. 21, 2020

In the early days of Bitcoin, there were no rules, or at least none that people understood. The first batch of companies were focused entirely on functionality; Simply making things possible that before crypto had been impossible.

In the aftermath of the collapse of first MTGox and then later TheDAO, it became obvious that rules did apply, or at least would moving forward. But what wasn’t very clear was how they’d apply as different regulatory bodies claimed authority in confusing and often conflicting ways.

See also: Kraken Becomes First Crypto Exchange to Charter a US Bank

As law, if not order, came to the industry, much of crypto’s first wave of US based exchanges were crushed as they struggled to get legal, a challenging task with different rules and unique compliance burdens for each state and territory they’d operate in. New York famously introduced the Bitlicense, which in the five years since it’s introduction has approved just 25 companies to operate in the U.S. financial hub.

Related: Lyn Alden’s Latest: Why Currency Devaluation Is Inevitable

On today’s show Kraken Financial CEO David Kinitsky joins the discussion of just how much things have changed as Kraken becomes the first crypto company to receive a banking charter under Wyoming’s Special Purpose Depository Institution statute. And more importantly, what happens next.

For more episodes and free early access before our regular releases, subscribe with Apple PodcastsSpotifyPocketcastsGoogle PodcastsCastboxStitcherRadioPublicaiHeartRadio or RSS.

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