Kraken Germany Removes Lightning Network Support
The German banking authority BaFin is unaware of "new regulations that came into effect on September 10th", allegedly leading Kraken Germany to halt support for the Lightning Network according to customer service representatives. Kraken issued a correction after publication of this article.
The global cryptocurrency exchange platform Kraken has halted support for the Lightning Network for German customers. The stop comes with Kraken's move to BaFin regulated banking provider DLT Finance.
According to Kraken support representatives, Kraken Germany is unable to continue its support for the Lightning Network for German customers due to "new regulations that came into effect on September 10, 2024".
"We have to conform to constantly changing regulations. Unfortunately, the change involves Lightning being no longer available as part of DLT's BaFin authorization," the representative added.
The press office of German banking authority BaFin told The Rage over the phone that it is unaware of regulations that came into effect on September 10th. It added that BaFin has not issued a statement on possible disciplinary measures for Kraken or DLT Finance, which may result in stricter regulations for specific service providers.
Kraken or DLT Finance may be appealing disciplinary measures which would not be publicized, but BaFin cannot give information on ongoing processes for specific companies, the BaFin press office stated.
According to a post on StackerNews, a Kraken support representative informed a German customer that "currently it [Lightning Network support] is down to regulatory issues but as soon as we are able to bring back the service we will."
Updated on Sept 13th, 5pm EST:
A Kraken spokesperson has told The Rage that "after investigation of the issue we found that Kraken Support incorrectly cited regulatory changes as the reason for halting Lightning support in the German market. The change of service for German clients wanting to use Lightning is the result of technical changes. While we always strive to provide the best and most innovative services to our clients, we unfortunately sometimes have to make tough decisions to ensure we can offer a reliable and secure platform for as many clients in Germany as possible."
DLT Finance did not respond to a request for comment.
Independent journalism does not finance itself. If you enjoyed this article, please consider donating to our Geyser Fund.
