Kraken, the prominent cryptocurrency exchange, has made a strategic move to enhance its presence in the United States by acquiring TradeStation Crypto. This acquisition provides Kraken with an expanded regulatory license in the US. TradeStation Crypto is a subsidiary of TradeStation Group, which operates under Monex Group.
According to a representative from Kraken, this acquisition plays a crucial role in the company’s strategy to grow its footprint in the American market. The representative also expressed optimism about the potential of this acquisition to unlock new opportunities and drive increased growth for Kraken.
This strategic move holds great significance for Kraken as TradeStation holds money transmitting licenses from more than 40 states in the US. However, earlier this year, TradeStation faced challenges when it was fined $3 million by the US Securities and Exchange Commission (SEC) for offering unregistered crypto-lending products. The SEC considered TradeStation’s program, which allowed users to earn interest on cryptocurrency deposits, as a security. As a result, TradeStation was unable to obtain the necessary federal registration, leading to the suspension of its services around two years ago.
It is important to note that TradeStation and the SEC, along with the North American Securities Administrators Association (NASAA), reached a settlement resulting in the $3 million fine. In response to this setback, TradeStation’s parent company announced its exit from the cryptocurrency market.
TradeStation played a significant role in Francis Suarez’s plan to establish Miami as a hub for cryptocurrencies. The company commissioned the creation of a remarkable 11-foot-tall, 3,000-pound sculpture known as the Miami Bull, which was unveiled by Suarez.
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