Apr 20, 2024 12:25
The crypto exchange Kraken has acquired TradeStation Crypto, the digital asset-focused division of online brokerage TradeStation, to support its expansion efforts in the United States, Coindesk reported.
However, the closing date of the acquisition and other details remain unclear as neither company has announced anything officially. The financials of the deal have not been revealed.
Krakens Push in the US
We can confirm Kraken has recently purchased TradeStation's crypto business, a Kraken spokesperson wrote in an email confirming the acquisition to the crypto-focused publication. This transaction is part of our efforts to accelerate our US presence and will support further growth and new product opportunities for Kraken in the US.
Indeed, Florida-based TradeStation Crypto holds money transmitter licenses in 47 states in the US, Washington DC, and Puerto Rico, according to the Financial Crimes Enforcement Centers database. These licenses are necessary for running crypto exchange operations and registrar businesses in compliance with federal laws in the US.
A Global Expansion Plan
Headquartered in San Francisco, Kraken is focused on its expansion, both domestically and internationally. In Europe, the exchange recently obtained multiple licenses, including regulatory approval in Spain and Ireland. Furthermore, the American exchange acquired BCM, a Dutch crypto exchange, late last year to expand its presence in continental Europe.
Recently, Kraken expanded its services with the launch of a self-custodial cryptocurrency wallet. The exchange also offers a dedicated platform to its institutional clients, along with custodial solutions.
Meanwhile, Kraken is facing regulatory backlash. The US securities regulator has charged the exchange with illegally operating an unregistered securities exchange, broker, dealer, and clearing agency, and with mixing customers money and crypto assets with its own.
Interestingly, TradeStation Crypto settled with the Securities and Exchange Commission earlier this year by paying $1.5 million for offering crypto lending products, which were categorised as unregistered securities.
This article was written by Arnab Shome at www.financemagnates.com.
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