Kraken’s play is a move that will put it higher on the hierarchical scale of the crypto market. You might know the exchange as a trading site with reasonable security measures and a wide selection of assets. So what has it done recently?
It just bought a U.S. company out. Resulting from what was a $3 million SEC settlement, the TradeStation exchange was ripe for the taking. Its parent company, Monex Group, Inc., exited the crypto market and found its ideal buyer.
In a bid to earn regulatory status in the United States, Kraken finally comes through on its word and bought TradeStation for an undisclosed amount. Being based in Florida has allowed TradeStation to earn clearances through fair practices and U.S. regulatory standing.
The list of credentials it already has include:
- SIPC Insurance—Individual accounts with TradeStation are protected from unexpected loss but for a maximum compensation of up to $500,000 with $250,000 payable as cash.
- Funds In Excess—To “insure” user accounts, the exchange has hedged $166.2 million though it only needs to maintain roughly $9.2 million to cover unexpected losses.
- United States Registry—Though the vast regulations TradeStation has are helpful, its primary regulatory asset is its legal title as a U.S. business.
- Reporting—What kept the agency in business is its transparency. It does so by using the reporting and auditing rules of the Securities and Exchange Commission (SEC).
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What Kraken’s Play Really Means
This development means that Kraken will not only be accessible to the U.S. trader but that it might rebrand itself as a U.S. company entirely. The legal standing TradeStation has will, essentially, be transferred to Kraken though some legal hoops might have to be jumped.
What TradeStation Is and Why It Matters
TradeStation is a cryptocurrency exchange with some cool features that make it stand out from other behemoths.
It hosts zero-commission trades, which apply to a broad asset selection.
You can buy, sell and store your crypto through this agency. When using the site and activating your account, you’ll also find an active community of investors whom you can learn from. The platform’s core competencies include:
- – Stocks
- – Bonds
- – Mutual Funds
- – Options
- – Futures
- – Crypto
As for the exchange’s more recent development, stated in its own words:
“We can confirm Kraken has recently purchased TradeStation’s crypto business. The transaction is part of our efforts to accelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken in the U.S.“
If you haven’t already signed up with Kraken, now might be the ideal instance to. You’ll find all the info you need through this Kraken review and our honest opinion of it.
