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Crypto Biz: Kraken offers stock trading as exchanges adapt to changing regulations

September 29, 2023No Comments


Cryptocurrency exchanges are adopting alternative strategies to conduct business in the face of stricter crypto regulatory environments around the world. There are signs everywhere.

Kraken is reportedly taking steps to offer stock trading in the United States and the United Kingdom to expand its reach and compete with popular apps like Robinhood, which offer stock and cryptocurrency trading. On the other hand, Gemini is expanding its presence in India with an investment of $24 million in its development center.

Another challenge for crypto exchanges has been licensing and communicating with regulators. Binance reopened its Belgium branch this week after a three-month hiatus in the country due to issues with local regulators.

Kraken has also expanded its European licenses and now offers euro-to-cryptocurrency trading services in 27 European Union member states and European Economic Area countries. As crypto regulations evolve, exchanges are adapting to incorporate new-age practices.

This week's Crypto Biz explores Kraken's securities arm, Gemini's expansion into India, Binance's return to Belgium, and an oil company in Argentina investing in crypto mining.

Crypto Exchange Kraken Plans Move to US Stock Trading: Report

Kraken supposedly plans to offer stock trading services and exchange-traded funds listed in the United States. The crypto exchange intends to launch its trading services in the US and UK in 2024 through a new division called Kraken Securities. Expanding beyond cryptocurrencies would require a license from the Financial Industry Regulatory Authority and UK financial regulators, which the exchange reportedly already possesses. Meanwhile, in Europe, Kraken received an electronic money institution license from the Central Bank of Ireland and a virtual asset service provider (VASP) registration from the Bank of Spain. The Irish license allows Kraken to expand euro-to-cryptocurrency trading services to 27 European Union member states and European Economic Area countries. VASP registration in Spain allows Kraken to offer exchange and wallet custody services.

Gemini invests 24 million dollars for its expansion in India

Cryptocurrency exchange Gemini is allocating 2 billion rupees ($24 million) for its expansion in india. The funds will be used to grow the bourse's development center in Gurgaon, a major satellite city of Delhi. Since its initial launch in May, Gemini Gurgaon Development Center has expanded to over 70 employees, with active hiring of software engineers, technical product managers, talent acquisition, finance, support and compliance. In supporting the expansion, Gemini cited the Indian government's "strong support framework that allows startups to thrive." The move is part of Gemini's "big international growth plans this year in APAC."

Cryptocurrency exchange Binance reopens exchange services in Belgium

Binance cryptocurrency exchange has reopened registration and access to products and services for Belgian users again, three months after Belgium's financial regulator ordered the exchange to cease cryptocurrency-related services. โ€œNew registrations from Belgian residents are welcomed once again on our platform,โ€ Binance said, adding that several products and services will once again be accessible to Belgian users who accept its new Terms of Use in the country. Binance has not revealed what changes were made to allow it to resume services in Belgium. Elsewhere in Europe, Binance has signaled plans to remove stablecoins from the European market by June 2024 to comply with the European Union's incoming Markets in Crypto Assets (MiCA) legislation, which will come into force on that date.

Argentine oil company will begin extracting cryptocurrencies with remains of gas energy

Tecpetrol, an oil company based in Buenos Aires, has decided to convert excess gas in energy for cryptocurrency mining. According to local media reports, Tecpetrol plans to drill at least 35,000 barrels of oil per day at the facility, but in the absence of infrastructure to consume the gas that is released in the process, the company decided to explore crypto mining. Tecpetrol expects to begin its mining activities between the end of October and the beginning of November. The main objectives are to reduce the environmental impact by avoiding gas emissions and generating additional benefits. As part of the plan, it is working with a US company with experience implementing similar strategies.

This week's Crypto Biz explores Kraken's securities arm, Gemini's expansion into India, Binance's return to Belgium, and an oil company in Argentina investing in crypto mining.