Overview
Kraken, the fourth-largest global cryptocurrency exchange, has expanded its services with a mobile app launch in the U.S. This move enables American users (excluding New York and Washington residents) to trade over 50 cryptocurrencies with minimal investments starting at $10.
Key Features of the Kraken Mobile App
- Accessibility: Trade 50+ cryptocurrencies via iOS and Android devices.
- Low Entry Barrier: Start investing with just $10.
- Future Enhancements: Credit/debit card payments and advanced trading options planned for upcoming updates.
👉 Discover how Kraken compares to other top exchanges
Regulatory Landscape and Limitations
Kraken’s app is unavailable in New York and Washington due to stringent compliance costs. The exchange previously exited New York in 2015 over regulatory conflicts with the state’s BitLicense framework.
Kraken’s Regulatory Milestones
- Wyoming Charter: Became the first digital asset bank in September 2020, offering custody and fiduciary services.
- FinCEN Registration: Registered as a Money Services Business (MSB), though not OCC-regulated.
Market Context and Growth
Kraken’s trading volume surged sixfold since January 2021, driven by heightened retail and institutional interest in crypto. CEO Jesse Powell criticizes U.S. policies as "shortsighted," contrasting with Europe’s progressive stance where margin and futures trading are already available.
Institutional Crypto Adoption
- Wells Fargo: Launching crypto investment platforms for high-net-worth clients.
- Citi & Goldman Sachs: Exploring crypto custody and trading desks.
- BNY Mellon & JPMorgan: Providing crypto services for asset managers and exchanges like Coinbase.
Consumer Adoption and Challenges
Kraken’s app aims to simplify crypto for mainstream users. However, Bitcoin’s 40% drop from its April 2021 peak underscores market volatility. Federal Reserve Chair Jerome Powell remains cautious about a U.S. digital dollar, while the OCC encourages blockchain-based payments.
👉 Learn how to navigate crypto volatility
FAQ Section
1. Which U.S. states cannot access Kraken’s app?
New York and Washington residents are excluded due to regulatory compliance costs.
2. What is the minimum investment on Kraken’s mobile app?
Users can start trading with as little as $10.
3. Does the app support credit card payments?
Not yet, but Kraken plans to add this feature soon.
4. How does Kraken’s regulatory status compare to traditional banks?
Kraken holds a Wyoming banking charter for digital assets but isn’t OCC-regulated like national banks.
5. What cryptocurrencies can I trade on Kraken?
50+ tokens, including Bitcoin and Ethereum, are available.
6. Why did Kraken leave New York in 2015?
The BitLicense requirements were deemed overly invasive by Kraken’s leadership.