Reportedly Kraken crypto exchange accelerated its efforts for Initial Public Offering (IPO) by the next year.
Kraken is a popular cryptocurrency exchange which was founded in 2011. The United States (US) based crypto firm offers a wide range of digital assets for trading, including Bitcoin, Ethereum, and many altcoins. The services of this platform are known for its robust security measures and comprehensive trading features, Kraken serves both individual and institutional investors.
On 6 June 2024, Bloomberg reported that Kraken was planning for a more than $100 million funding round, as a part of the IPO of this company as early as next year.
A source close to the matter disclosed that Kraken is currently in pre-IPO funding discussions & seeking a reputable company to join its board of directors to assist in successfully launching an IPO.
It is worth it to note that Kraken was the first crypto exchange in the American crypto market to plan for IPO, even before Coinbase, but what types of road bump stopped this exchange for this plan is still unclear.
Kraken vs SEC
This crypto exchange is also known for its highly compliance crypto services but still faced significant heat from the US financial regulators.
In particular, the United States Securities and Exchange Commission (SEC) has a very long history of fighting with Kraken.
In Nov 2023, the US SEC sued Kraken for operating crypto trading services, which was a violation of the federal Securities Act, as the majority of the cryptocurrencies are unregistered securities under the purview of the SEC body.
Before that, in Feb 2023, the SEC body charged Kraken for providing crypto staking services with the promise to give 21% returns on staking investment.
The case around crypto staking was later settled by the exchange for a $30 million fine. However, the Kraken team decided to settle the case but later the Kraken CEO admitted that it was their mistake, instead, they should stand against the charges.
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