Kraken, the leading U.S.-based crypto exchange, has made significant strides in expanding its American presence with the acquisition of TradeStation’s crypto business. The acquisition marks a strategic move for Kraken in fortifying its position in the U.S. market.
While the exact date of closure remains undisclosed, the acquisition signals Kraken’s commitment to broadening its services nationwide. This aligns seamlessly with Kraken’s overarching strategy of securing licenses in key European markets like Spain and Ireland earlier this year.
A Kraken representative affirmed the acquisition, stating it’s integral to accelerating their U.S. footprint and fostering further growth and product innovation in the region.
TradeStation Crypto’s readiness for integration is underscored by its possession of money transmitter licenses in 47 states, Washington D.C., and Puerto Rico. Compliance with U.S. regulatory frameworks, including FinCEN’s guidelines, is paramount for crypto exchanges operating within the country’s borders.
GAINS News — April 18
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KRAKEN MAKES NEW ACQUISITION 🐙@krakenfx acquires online brokerage TradeStation's crypto… pic.twitter.com/RMYMNjnCVY
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Earlier, TradeStation Crypto faced regulatory scrutiny from the SEC regarding its unregistered crypto lending product. Despite settling the charges by paying a $1.5 million penalty without admitting or denying the findings, the SEC’s directive led to the cessation of this service by June 30, 2022.
Established in 1982 and acquired by Japan’s Monex Group in 2011, TradeStation made its foray into crypto in 2020 with deposit accounts offering interest. By 2021, the platform boasted over 11,000 active users globally. However, the SEC’s classification of its lending product as a security led to its discontinuation.
Kraken’s acquisition of TradeStation’s crypto arm not only bolsters its domestic expansion but also underscores the evolving regulatory landscape within the U.S. crypto market.
