Kraken explores new ACH funding options

Friday 24 March 2023 10:29 CET | News

Digital asset exchange Kraken has notified its users via email that that it won’t be able to support ACH deposits and withdrawals starting from 27 March.


According to citing alleged Kraken users, the company sent an email with the announcement on 22 March and advised users to look at the other available funding options to ensure an uninterrupted funding experience. These alternatives could include MVB Bank for Fedwire deposits and withdrawals, as well as other instant purchase options supported by Kraken. 

The company also issued a statement in which it informed users that they would no longer see a deposit option via Plaid or a withdrawal option via ACH Silvergate starting with 27 March. However, they also noted that no other services will be impacted by the change, including ACH instant purchases via Online Banking. 

Kraken joined the Silvergate Exchange Network in 2019, and as part of the agreement, clients of the US-based crypto exchange gained the ability to deposit and withdraw US dollars from Silvergate accounts with no fees. Cointelegraph reports that Kraken is not the only crypto exchange that was forced to stop its ACH deposits and withdrawals via Silvergate. On 2 March 2023, Gemini also stopped accepting customer deposits and processing withdrawals through Silvergate ACH and wire transfers.


Digital asset exchange Kraken has notified its users via email that that it won’t be able to support ACH deposits and withdrawals starting from 27 March.


Kraken was recently fined by the SEC 

In February 2023, cryptocurrency exchange Kraken has received a USD 30 million fine from the Securities and Exchange Commission for violating securities laws. The US-based company has agreed to pay the fine and completely halt its crypto staking service for US residents. The SEC revealed in a statement that the firm had failed to register the offer and sale of its crypto asset staking-as-a-service program, which has led to the fine.   

Kraken, which consists of Payward Ventures Inc and Payward Trading Ltd has neither confirmed nor denied the SEC’s allegations but revealed that they will still provide staking services for non-US residents through a Kraken subsidiary. According to the SEC’s complaint, since 2019, Kraken has offered and sold its crypto asset staking service to the general public. The service allows Kraken to pool certain crypto assets transferred by investors and stake them on behalf of those investors. 

This isn’t the first time that Kraken had to face legal issues. In November 2022, the company had to pay the US Treasury Department’s Office of Foreign Assets Control USD 362,158 for apparent violations of sanctions against Iran. At the time, Kraken officials cited by revealed that the matter was voluntarily self-reported and corrected in a timely manner.

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Keywords: cryptocurrency, cryptocurrency exchange, digital assets, funding
Categories: DeFi & Crypto & Web3
Companies: Kraken
Countries: United States
This article is part of category

DeFi & Crypto & Web3


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