Kraken, a cryptocurrency exchange, has made a strategic acquisition by purchasing TradeStation Crypto, a subsidiary of TradeStation Group. This move aligns with Kraken’s goal of expanding its presence in the American market. By acquiring TradeStation, Kraken also gains access to over 40 money transmitting licenses in various US states.
However, TradeStation Crypto faced regulatory issues earlier this year when it was fined $3 million by the US Securities and Exchange Commission (SEC) for offering unregistered crypto-lending products. The SEC deemed TradeStation’s interest-earning program as a security, which led to the suspension of its services.
TradeStation’s parent company decided to exit the cryptocurrency market following the fine and settlement with the SEC and the North American Securities Administrators Association (NASAA). This decision had an impact on Francis Suarez’s plan to establish Miami as a crypto hub, as TradeStation was involved in commissioning the Miami Bull sculpture.
In conclusion, Kraken’s acquisition of TradeStation Crypto not only strengthens its regulatory position in the US but also presents opportunities for new products and growth in the American market. However, TradeStation faced setbacks due to regulatory issues and ultimately decided to exit the cryptocurrency market.
