Banks Hesitant to Serve Crypto Customers, Says Kraken’s Chief Legal Officer

Marco Santori, the Chief Legal Officer for Kraken, recently spoke about the impact of regulatory actions in the U.S. on the ability of crypto companies to access banking services.

According to Santori, banks have become increasingly hesitant to accept new crypto clients due to the uncertain regulatory environment.

In a recent podcast episode, Santori highlighted how regulatory scrutiny has made banks wary of working with crypto companies.

He also noted that this trend has given an advantage to incumbent crypto players, such as Coinbase and Kraken, who have established relationships with banks and are better positioned to navigate the current regulatory landscape.

Santori’s comments come in the wake of the recent SEC charges against Kraken for failing to register its “crypto asset staking as-a-service program” in the U.S.

The charges were seen as a sign of the SEC’s increased focus on the cryptocurrency industry and its efforts to ensure that companies are in compliance with existing regulations.

The uncertainty surrounding regulatory compliance has made it difficult for many crypto companies to access banking services. This, in turn, has limited their ability to expand their businesses and compete with established players in the industry.

However, Santori believes that the current regulatory environment may ultimately benefit established crypto players in the U.S., as they are better equipped to deal with regulatory challenges and have established relationships with banks.

This may make it more difficult for new entrants to gain a foothold in the market and compete with the existing players.