|Image by Csaba Nagy from Pixabay|
As retail investors flock to digital currencies, rival crypto exchange Kraken is releasing its mobile app in the United States less than two months after Coinbase’s stock market launch.
Starting on Wednesday, many customers across the United States will be able to purchase and trade more than 50 crypto tokens safely from their mobile phones thanks to the new Kraken App.
Chief Product Officer Jeremy Welch said that this consumer app is their first significant effort into promoting greater consumer adoption in a much more streamlined, easy-to-use interface. Earlier this year, the app was released in Europe.
Kraken is the world’s 4th largest digital currency exchange by trading volume.
Krakenclaims to have the lowest costs in the industry amid a crowded market of bitcoin apps. Its quick verification and onboarding processes are cited as a key feature. Depending on the user’s bank, the fastest onboarding and purchase test takes less than a minute.
Outside the United States, Kraken is well-known for its margin and futures trading services, which are not currently available to Americans. Kraken, which was founded in 2013, claims to have 7 million customers. It claimed that its trade volume increased by more than sixfold in May compared to January.
Welch said that at Kraken, the last 5 months have been fairly unreal. They’ve witnessed a significant increase in new clients as well as all-time highs.
The app does not now accept credit or debit card payments, but the business believes it will in the coming weeks and months.
According to the firm, Residents of New York and Washington state are not served because of the expense of maintaining regulatory compliance.
The entry into the US market occurs during a period of regulatory uncertainty and a highly tumultuous cycle. While bitcoin’s worth has quadrupled in the last year, the price has plunged more than 40% from its April peak.
Concerns have been expressed by officials ranging from US Treasury Secretary Janet Yellen to European Central Bank President Christine Lagarde about the criminal use of cryptocurrencies such as bitcoin.
Jesse Powell, the CEO of Kraken, recently told CNBC that he believes there will be a broader crackdown on cryptocurrency trading. Powell claimed that the United States is more short-sighted than other countries and “sensitive” to pressures from established legacy businesses such as banks, who “stand to lose” if crypto becomes a big problem.
Kraken has adopted a different approach to crypto holdings, which are FDIC insured up to $250,000 per U.S. user on Coinbase.
While Krakentakes great care to secure the assets of its customers from loss, exchanges do not qualify for deposit insurance programs and should not be used as bitcoin wallets, as the company stated on its official website.
Kraken is a money services business registered with the US Treasury Department’s FinCEN, and it claims to follow all legal and regulatory standards in all jurisdictions.
Prior to the crypto market’s May sell-off, Powell stated that the company was exploring going public in 2022 via a direct listing, similar to Coinbase’s.
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