Crypto Exchange,Kraken, Launches New App In The United States

Eight years after its launch, Kraken is coming to the United States. From Wednesday, Kraken will allow millions of users around the country trade various crypto tokens(up to 50) securely from the new mobile app.

Founded in 2011, Kraken is a cryptocurrency exchange and bank which provides crypto-to-fiat-money trading. It is currently the fourth-largest digital exchange currency in the world, in terms of trading volume.

Only two months after major crypto exchange,Coinbase , went public, Kraken has brought its mobile app to the United States as more and more are choosing digital currencies as their preferred investments. From Wednesday, users in the States will be able to buy and sell crypto from their even phones.

According to Jeremy Welch, Kraken's CPO,

“This consumer app is our first major foray into supporting wider consumer adoption in a much more simplified, easy-to-use interface."

In the super popular world of cryptocurrency apps, Kraken claims to offer “the lowest fees in the industry.” The company all hails it its speedy verification and onboarding times and claims it is one of the best in the business. The fastest onboarding and purchase test is under a minute, depending on the user’s bank.

Kraken is even more popular outside the States due to its margin and futures trading offerings, both options which are currently unavailable to U.S. consumers. The company says it now has 7 million clients. The CEO disclosed in its May trading volume grew more than sixfold from January.

“The last five months have been pretty unreal at Kraken,” said Welch. “We’ve seen a surge in new clients and in all-time highs.”

While the app does not support credit and debit card payments currently, the company has disclosed that it has plans to enhance its offerings in coming weeks and months. 

Users all over the United States will be able to access these services, except those resident in Washington and New York. This is due to the “cost of maintaining regulatory compliance.”

Kraken's sojourn into the US market coincides with a time when the economy is plagued by regulatory uncertainty and volatility. Bitcoin for example,has dropped by over 40% from its high in April.

Officials ranging from U.S. Treasury Secretary Janet Yellen to European Central Bank President Christine Lagarde have raised concerns over the nefarious use of cryptocurrencies like bitcoin. 

Kraken CEO Jesse Powell previously told CNBC he thinks there could be a wider crackdown in crypto trading. Powell said the U.S. is more “shortsighted” than other nations and “susceptible” to the pressures of incumbent legacy businesses like banks, which “stand to lose from crypto becoming a big deal.”

Whereas crypto holdings on Coinbase are FDIC insured up to $250,000 per U.S. customer, Kraken has taken a different approach. 

In a note to customers on its website, Kraken said that while the company takes “great care to protect the assets” of clients from loss, exchanges do not qualify for deposit insurance programs, nor should they function as cryptocurrency wallets.

Kraken is registered as a money services business with the U.S. Treasury Department’s FinCEN and says it complies “with legal and regulatory requirements in all jurisdictions” where it operates.

Before the May sell-off in the crypto market, Powell said the company was considering going public in 2022 via a direct listing, similar to the route taken by Coinbase.