Federal Reserve (FED) · CryptoSlate
No public source finds that the Kansas City Fed has opened a termination process or caught Kraken Financial out
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That distinction will shape the next stage.
Key facts
- ICIJ reported that Kraken transferred at least $1.1 billion worth of Bitcoin to crypto ATM operators in recent years, including more than $700 million to Coinhub and at least $245 million to Byte
- Victims age 60 and older accounted for roughly $257.5 million of those losses
- The Kansas City Fed approved Wyoming-based Payward Financial, dba Kraken Financial, for an initial one-year limited-purpose account under the Fed's Tier 3 review process
- In a June 18 letter, the community-bank trade group urged the Kansas City Fed to immediately review whether Kraken Financial's limited-purpose account remains consistent with the Fed's account-access
Summary
01 ICBA asked the Kansas City Fed to review Kraken Financial’s one-year limited-purpose account before renewal and consider tighter action. 02 The trade group says the account should face fraud, AML, legal, and precedent risks for a crypto-affiliated uninsured firm. 03 The Fed has not opened termination proceedings, so the next signal is whether it changes terms or renews the account. The banking group, ICBA, is asking the Federal Reserve Bank of Kansas City to turn Kraken's Fed account into an active renewal test before the initial one-year term expires. In a June 18 letter, the community-bank trade group urged the Kansas City Fed to immediately review whether Kraken Financial's limited-purpose account remains consistent with the Fed's account-access guidelines and to consider further restrictions, suspension, non-renewal, or termination if warranted.