Kraken, a cryptocurrency exchange situated in San Francisco, is making news once more, but this time for two key reasons.
The corporation is always in negotiations with Deribit about the acquisition. At the same time, it is under increasing pressure from US officials, like as the FBI and the SEC, to disclose client data.
Kraken is still negotiating to buy Deribit
Deribit, a large cryptocurrency options exchange, is still in conversation with Kraken about a prospective takeover. Despite claims that Kraken had pulled out, sources affirm that discussions are still underway.
According to reports, Deribit Exchange is worth between $4 billion and $5 billion and remains a major participant in the options market, making it an appealing target for growth.
If Kraken successfully purchases Deribit, it may increase its position in the cryptocurrency derivatives market, providing it an advantage over competitors.
Coinbase Enters the Acquisition Deal
Kraken is not the only exchange interested in Deribit. Coinbase has also expressed interest in purchasing the platform, increasing competition for the acquisition. Deribit’s CEO, on the other hand, has stated that the firm is currently assessing several buyout proposals in order to keep its options open.
US Regulators Seek Kraken’s User Data
While Kraken is in takeover negotiations, it is also facing pressure from US regulators. Several organizations, including the FBI and SEC, have requested client data from Kraken in 2024.
However, a transparency report indicated that Kraken received 6,826 data requests from worldwide authorities, with 57% originating from US officials.
The SEC, which previously sued Kraken for allegedly running an unlicensed exchange, received 37% of the U.S. inquiries. Other organizations, such as the Commodity Futures Trading Commission and the Office of Foreign Assets Control, have also sought information from Kraken.
Kraken’s Growth Despite Challenges
Despite regulatory difficulties, Kraken’s business remains robust. The exchange recorded $1.5 billion in revenue in 2024, up 128% from the previous year.
While it confronts challenges in the United States, Kraken’s growth plans, including a possible Deribit purchase, might influence its future in the cryptocurrency business.
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