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Jesse Powell Says Overregulation may Lead Kraken to Relocate Outside U.S.

Jesse Powell Says Overregulation may Lead Kraken to Relocate Outside U.S.

Jesse Powell, the CEO of Kraken, advocated that the exchange plans to an IPO in 2021 in an interview with Fox Business. Nevertheless, it may require to consider relocating to another nation. Moreover, Powell spoke briefly on the tightening regulations, which seem to be a concern for him. For that reason, Jesse Powell claims that the Kraken exchange might have to move out of the U.S. if the regulations force it out of the country.

Apart from overregulation, he also indicated that the lack of national strategy could compel Kraken to move away. In the long term, this could affect other platforms as well. Moreover, U.S. authorities have not been 100% transparent about crypto market policies and rules. Powell also illustrated that the exchange would launch an IPO this year after the highly-anticipated Coinbase listing. Kraken’s IPO may launch in the second half of 2021.

Talking about relocation alternatives, he named Japan, the United Kingdom, and the United Arab Emirates as potential new locations. The exchange currently relaunched crypto trading in Japan following a two-year hiatus. Moreover, the exchange received approval to become America’s first crypto bank in September 2020. Kraken concentrated on introducing crypto to the masses, particularly in the customer space. Powell advocated that Kraken intends to provide access to financial services that are not always accessible to consumers. Distinctly, Powell’s Kraken is the fourth-largest crypto exchange by trading volume and has almost 6 million clients. 

U.S. Regulations Are Stringent With the Crypto Industry

Furthermore, the U.S. is one of the greatest markets for crypto, and much of the market activity happens there. Nevertheless, the SEC and CFTC have become strict, introducing various lawsuits against crypto organizations. The most significant of these is Ripple and Telegram, with the latter having to close its TON network. Concurrently, the U.S. has warmed up a bit more as far as the technology is involved. 

Christopher Giancarlo, the former CFTC Chairman, is co-leading a digital dollar project while businesses urge the government to enter the race. Officials have been mainly silent about a digital dollar. The accord among analysts is that the U.S. government worries that cryptocurrencies will undermine the dollar’s dominance. Recently, the dollar is the world’s reserve currency and is considered one of the safer assets. Recent reports allege that the Biden administration is seeing into central bank digital currencies (CBDC). It fears that China’s digital yuan will affect the U.S. dollar’s position.

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