Kraken Cryptocurrency Exchange Faces ACH Channel Challenges with Silvergate Bank Kraken, a major cryptocurrency exchange, has recently faced difficulties with its Automated Clearing House (ACH) deposit and withdrawal channel due to issues with its banking partner, Silvergate Bank.
As a result, Kraken has suspended its operations and is currently searching for a new banking partner to service this channel. Starting on March 27, Kraken customers will no longer be able to use the ACH channel hosted by Silvergate.
The exchange is actively working to bring new ACH service options to users through alternative financial service providers. Kraken assures its users that this temporary restriction of operations will not affect other services offered by the exchange.
It encourages its users to review other transaction options available, such as using the MVB Bank channel for deposits and withdrawals through Fedwire services. However, Kraken is not the only cryptocurrency exchange that has faced difficulties with its banking partners.
Previously, Coinbase had to stop supporting settlements through Signet’s digital payment platform, which is owned by its clearing partner, Signature Bank, after being forced to shut down by US financial regulators.
Overall, this highlights the challenges that cryptocurrency exchanges face in partnering with traditional financial institutions, as regulatory hurdles and other issues can lead to disruptions in service.