This episode features Jesse Powell of Kraken discussing the state of the cryptocurrency exchange, regulatory challenges, and the ongoing fallout from major industry collapses.
Summary:
Jesse details Kraken's current operational focus, including expanding into the Euro market, offering margin trading, and launching Ethereum services in Japan. He highlights the exchange's advanced features, such as leverage up to 3x and conditional orders, accessible via API. A major topic is Kraken’s withdrawal from New York, which Powell attributed not to technical failure, but to the regulatory environment, suggesting that the market was too small to justify conforming to local demands. The discussion also covered the cleanup efforts following the Mt. Gawks collapse, where Kraken has been involved in the investigation and claims process, estimating that victims could expect a payout of around 20%.
1) Main Topics Discussed:
* Kraken’s current market expansion (Euro market, Ethereum in Japan).
* Advanced trading tools offered (leverage, conditional orders, API access).
* Kraken's decision to withdraw from the New York market due to regulatory pressures.
* Kraken’s involvement in the Mt. Gawks claims process and investigation.
* The difficulty of recovering funds stolen from major exchanges (e.g., funds held by Mark Karpelès).
2) Key Quotes:
* "We're not going to contort the entire business just to fit New York's demands. I mean the market is not worth it."
* "Ballpark is around 20 percent." (Regarding expected Mt. Gawks payouts).
* "The market is still very tiny and it's still miniscule compared to a state like California for example."
3) People Mentioned:
* Jesse Powell (Kraken representative).
* Mark Karpelès (Associated with Mt. Gawks).
4) Bitcoin Price:
* Not mentioned.