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Kraken’s CEO Goaded By Fraudulent DeFi Projects

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Despite the fact that 2020 would go down as the worst year in history, the star of the crypto show is undoubtedly Decentralized Finance [DeFi]. Unfettered by the pandemic, the DeFi space unraveled itself into a promising alternative of investment for many. However, just like in any market, with good comes the bad. After its conspicuous performance, the DeFi space was swarmed by fraudsters looking to pocket some easy money. This abject manipulation of the market has enraged many, Kraken‘s CEO is the latest to express his infuriation about the same.

“Taking Your Losses Is The Only Way To Enlightenment”

Loss is difficult to deal with, in whatever form it may come in. However, dragging everyone else with you seems like a rather distressing option. Enraged by the same, Jesse Powell, the Co-Founder and the CEO of the prominent US-based crypto exchange Kraken went ballistic on Twitter.

Powell called out fraudulent DeFi projects for seeking aid from exchanges during times of trouble. He outrightly suggested that these scammy projects were to stop self-sabotaging and then count on exchanges to bail them out. His tweet further read,

“I will not accept your attempt at externalizing the cost of your hasty, reckless rollout. Invest in audits, insurance and please DYOR. Taking your losses is the only way to enlightenment.”

Kraken hoards several DeFi tokens and even went on to onboard several new coins including Filecoin [FIL], Yearn Finance [YFI] as well as Uniswap [UNI]. However, he was adamant about following the motto where scammy DeFi projects would be illuminated following their own losses.

Regardless of the invasion of deceitful projects, the DeFi space continued to flourish. By recording a new all-time high almost every other day, the DeFi industry recently pushed beyond $12 billion for the first time.

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At the time of writing, the DeFi market had stacked about $11.3 billion with Uniswap asserting its dominance by 24.16%. The decentralized exchange, Uniswap stood first in the DeFi ladder after locking $2.73 billion. Maker is no longer the face of DeFi as several other projects have evidently outshined the former over the past months.

While the DeFi industry did bring in a lot of value to the crypto-verse, scammy projects continue to put the whole industry in the wrong light. The last few months have particularly opened the gates for untold calamities in the DeFi space.

US-Based Kraken Dives Into Japanese Market (Again)

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The expansion of services has become one of the major goals of every crypto platform. Offering their services to countries across the globe is added to the to-do list of several exchanges. However, expanding and exploring via crypto is a rather challenging task. Over the years Asia has been a major attraction of investors. As per a recent announcement, Kraken is the latest exchange to express its keenness towards entering the Asian market.

Kraken Once Again Enters Japanese Market

Last month, Kraken, a US-based cryptocurrency exchange firm, revealed that it was resuming its services in Japan. Back in 2018, after four years of its launch in Japan, the crypto exchange halted rendering its services to Japanese residents. The exchange reportedly wanted to venture into markets that had a better rate of growth at the time. However, last month, Kraken wrote a blog post revealing the re-entry of the Japanese market.

In its most recent blog post, the exchange pointed out that it had rolled out account funding as well as trading in Japan. This initiative comes as part of the exchange’s high-growth expansion into the Asian Pacific [APAC] region. Commenting on the exchange’s latest venture, David Ripley, the Chief Operating Officer of Kraken revealed that he was “thrilled” to have commenced trading in Japan. He added,

“In today’s challenging economic environment, more people are turning to cryptocurrencies to hedge against volatile markets and use cryptocurrency as a store of value.”

The exchange has reportedly launched an array of services from spot trading to crypto deposits as well as domestic JPY deposits and withdrawals. Spot trading was available in five crypto assets including Bitcoin, Ethereum, XRPM Bitcoin Cash, and Litecoin. Crypto deposits were also available in the same range of assets.

Last month, the exchange set up a portal for Japanese residents to create accounts and had revealed that the services would commence from early October. In its previous blog post, Kraken revealed that it was looking into entering the Japanese market once again as “Japan is ripe for re-entry.”

Takeshi Chino, the CEO of Payward Asia, a Japanese entity of Kraken also commented on the latest development and said,

“Crypto has demonstrated that it has staying power and that it continues to evolve. Investors in the space are not only drawn to price movement, but also to new investment opportunities, including the innovation currently coming out of the DeFi space.”

Kraken Wins Approval to Create First Crypto Bank in US

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The Wyoming Banking Board granted cryptocurrency exchange Kraken’s application for a special purpose depository institution [SPDI] charter on Wednesday. With this approval, the San Francisco-based platform will now be able to create a crypto bank in the state.

According to Kraken’s Chief Legal Officer, Marco Santori, the bank was tentatively called ‘Kraken Financial’. It is quite an important development in the cryptocurrency ecosystem since with this approval, Kraken not only becomes the first newly chartered [de novo] bank in Wyoming since 2006 but also the first exchange to roll out a bank under a new regulatory framework in Wyoming. This move will essentially expand its product suite.

To solidify its position as a bridge between crypto and traditional finance, Kraken Financials will provide crypto-focused services such as digital asset custody, demand/deposit accounts [DDAs], wire transfer, and funding services in its first year of operations

With a permanent physical presence in Cheyenne, Wyoming, Kraken Financial, is the first digital asset company in the country’s history to receive a bank charter recognized under federal and state law. Additionally, it will be the first regulated U.S. bank to provide comprehensive deposit-taking, custody as well as fiduciary services for digital assets.

The new bank will enable Kraken’s clients in the U.S. to bank easily between digital assets and national currencies by enabling its customers to pay bills and receive salaries in crypto, incorporate digital assets into investment and trading portfolios. However, Kraken Financials will not be allowed to issue loans using customer deposits and will be regulated largely similar to other U.S. banks.

Kraken’s official blog post revealed,

“During its first year of operations, the SPDI plans to give clients the ability to deposit USD and custody digital assets at a regulated state-chartered bank. These banking services will be seamlessly integrated into the existing exchange services, providing clients better funding infrastructure, a better experience and enhanced regulatory clarity”