Kraken Acquires TradeStation Crypto to Expand U.S. Presence and Regulatory Licensing

Kraken, one of the leading cryptocurrency exchanges, is making a big move in the United States by acquiring TradeStation Crypto, the digital assets unit of TradeStation Group. This acquisition is part of Kraken’s strategy to expand its regulatory licensing in the U.S. and unlock new growth opportunities.

TradeStation Crypto holds money transmitter and other regulatory licenses in multiple U.S. states, making it a valuable asset for Kraken. However, both companies have had their share of regulatory challenges. The Securities and Exchange Commission (SEC) recently fined TradeStation Crypto $1.5 million for failing to register a crypto lending product. Kraken, on the other hand, faced charges from the SEC for commingling customer funds and operating as an unregistered securities exchange.

Despite these challenges, Kraken remains committed to compliance and transparency. The company’s chief compliance officer emphasized the importance of identifying and addressing issues proactively to avoid regulatory surprises. In addition to the acquisition of TradeStation Crypto, Kraken also announced the launch of Kraken Institutional, a new brand catering to institutional investors and high net-worth individuals.

Overall, Kraken’s acquisition of TradeStation Crypto and its focus on compliance demonstrate the company’s commitment to growth and innovation in the rapidly evolving cryptocurrency market. Stay tuned for more updates on this exciting development in the world of digital assets.