According to Bloomberg, Kraken is moving away from utilizing the crypto-focused bank Signature Bank for some vital financial operations. The move from Karken marks the latest shift by a cryptocurrency exchange away from Signature Bank.
In an email, Kraken stated that it will no longer allow non-corporate clients to use Signature Bank to make dollar deposits or withdrawals. On March 15, deposits will gradually stop, and on March 31, withdrawals will also stop.
Bloomberg quotes Kraken as mentioning that the adjustment was brought about by Signature. Also, Signature stated that it will no longer assist any of its customers using its cryptocurrency exchange in making purchases and sales of less than $100,000. In December, Signature said that, although not completely removing it, it will be decreasing its exposure to the cryptocurrency industry.
With intentions to limit its exposure to digital currency deposit exposure to less than 15% of total deposits from 23.5%, SBNY indicated in December 2022 that it would lessen its exposure to the troubled crypto market.
In February, to resolve allegations with the U.S. Securities and Exchange Commission, Kraken agreed to end its staking programme and pay $30 million. The move by SEC restricted the U.S citizens from staking in Kraken. This agreement came as the agency and other regulators increased their scrutiny of the sector.
