Kraken, a leading crypto exchange, has announced its plans to launch its own bank for digital assets, which is set to shake up the traditional banking industry. Kraken’s digital asset bank will offer various services, including deposit accounts, wire transfers, and funding options for cryptocurrencies. By integrating banking services with its existing trading platform, Kraken aims to provide a seamless and convenient experience for customers looking to invest in digital assets.

With the growing demand for digital currencies, there has been a need for financial institutions to provide more efficient and secure services for digital assets. Kraken’s new bank aims to provide users with a seamless and secure experience.

This disruptive move is expected to bring more legitimacy to the cryptocurrency industry, as it provides a safe and reliable way for users to store and manage their digital assets. Kraken’s bank will provide custody, deposit-taking, and wire transfer services, among others.

The bank will be a Special Purpose Depository Institution (SPDI) overseen by the Wyoming Division of Banking. It requires SPDI banks to keep their reserves full, ensuring that user funds will not be lent out without user permission.

While the investments made through the bank will not be insured by the Federal Deposit Insurance Corporation (FDIC), Kraken says all assets will be available as cash or the least risky, most liquid cash equivalents. The company also claims to maintain significant capital reserves and surpluses in order to cover the full balance of all clients, even in the event of a bank run.

Kraken has been targeted by the Securities and Exchange Commission (SEC) for its unregistered offer and sale of securities in its staking-as-a-service platform available to US customers. To settle the charges, Kraken agreed to pay $30 million in disgorgement, prejudgment interest, and civil penalties and end its on-chain staking service for US clients. The move against Kraken serves as a warning to other crypto-related companies that do not adhere to US financial laws.

Kraken’s US-based staking service represented only a small percentage of the exchanges’ revenue, and the company neither admitted nor denied the allegations in the SEC complaint. Kraken’s Chief Legal Officer, Marco Santori, suggested that Americans are now more likely to seek out offshore staking services on riskier exchanges following this decision, which may affect the product mix in the US.

Regulators Continue Weeding Out Bad Seeds With Crypto Crackdown 

The launch of Kraken Bank comes at a time when regulators are cracking down on the entire market, making fully regulated platforms like INX Digital Company (NEO:INXD) (OTCQB:INXDF) stand out. 

INX Digital is a broker-dealer and inter-dealer broker that provides the first SEC-regulated digital asset trading platform for both cryptocurrencies and security tokens.

INX Digital has differentiated itself from other trading platforms by prioritizing compliance from the beginning. Instead of evading regulators, the company worked directly with them to become the first fully regulated platform for investors, traders, and issuers seeking to raise capital. This goal has now become a reality, making INX one of the first companies to receive FINRA clearance for trading and settling security tokens in the US and worldwide.

Additionally, the company offers INX.One, the world’s first and only fully-regulated, end-to-end platform for listing and trading SEC-registered security tokens and digital currencies. INX.One, is licensed to conduct security token private and public offerings, setting it apart from other exchanges like Coinbase and Binance. The company has even completed the world’s first SEC-registered security token IPO, raising $84 million from over 7,250 retail and institutional investors worldwide.

INX.One is a part of the company’s mission to increase access to the growing opportunities in the digital economy for US and international investors. By working closely with US and global regulators, INX.One sets a global standard for achieving democratization in financial markets while providing necessary regulatory oversight.

On March 16, INX announced its full support of the Polygon Blockchain for secondary listings on INX.One, solidifying another milestone in the company’s shared vision to establish the new digital economy by bringing real-world assets on chain. 

INX Digital also recently announced the listing of Hashrate Asset Group’s (HAG) Bitcoin mining security token on INX.One, adding to the multiple token offerings already listed on the breakthrough platform. The HAG Bitcoin mining security token, which is the first in the bitcoin mining space under Reg D/S filing to the SEC, offers eligible investors the option to invest in Bitcoin through hashrate ownership with the compliance and security of INX’s regulated platform.

INX.One provides a true Token-as-a-Service (TaaS) platform designed for capital raise purposes to security token issuers. The unified, regulated hub simplifies the issuance process by supplying everything required to quickly and easily issue a digital security token in order to raise capital. INX.One Issuance Services is an end-to-end solution for issuers that includes transfer agent, broker/dealer, and ATS licences to raise capital and list the token for secondary trading, smart contract design, and marketing and promotion support. INX has all of the licences that issuers require, as well as a global team of experts to help them along the way.

For more information on INX Digital Company (NEO:INXD) (OTCQB:INXDF) and the services it offers, visit this link or the company’s official website.

Source The INX Digital Company, Inc. (NEO:INXD)

Featured Image MegaPixl @ Alexandersikov

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding THE INX DIGITAL COMPANY, INC.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to THE INX DIGITAL COMPANY, INC.s industry; (b) market opportunity; (c) THE INX DIGITAL COMPANY, INC.’s business plans and strategies; (d) services that THE INX DIGITAL COMPANY, INC. intends to offer; (e) THE INX DIGITAL COMPANY, INC..’s milestone projections and targets; (f) THE INX DIGITAL COMPANY, INC.’s expectations regarding receipt of approval for regulatory applications; (g) THE INX DIGITAL COMPANY, INC.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) THE INX DIGITAL COMPANY, INC.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute THE INX DIGITAL COMPANY, INC.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) THE INX DIGITAL COMPANY, INC.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) THE INX DIGITAL COMPANY, INC.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) THE INX DIGITAL COMPANY, INC.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of THE INX DIGITAL COMPANY, INC. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) THE INX DIGITAL COMPANY, INC.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact THE INX DIGITAL COMPANY, INC.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing THE INX DIGITAL COMPANY, INC.’s business operations (e) THE INX DIGITAL COMPANY, INC. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, THE INX DIGITAL COMPANY, INC. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does THE INX DIGITAL COMPANY, INC. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither THE INX DIGITAL COMPANY, INC. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of THE INX DIGITAL COMPANY, INC. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of THE INX DIGITAL COMPANY, INC. or such entities and are not necessarily indicative of future performance of THE INX DIGITAL COMPANY, INC. or such entities.

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