Yugocean
Valued Contributor
Kraken founder Jesse Powell has introduced a nice guide on self-custody requirements, and as it had to be, Kraken's guide outlines the best way to use Kraken rather than self-custody of cryptos.
The collapse of FTX has prompted people to self-custody their crypto. While wallet platforms are catching on with the "Not your keys, not your coins" strategy, large exchanges such as Coinbase and Binance have started promoting their own wallets, sensing the current situation. However, exchanges that do not have self-custody wallets, such as Kraken, are at risk of losing investors, and they cannot even stop withdrawals because it will declare them scams. So Kraken is trying to save its platform by other means.
Powell acknowledges self-custody as a better solution for non-traders in the Self-Custody Guidelines but also cites the limitations of self-custody, citing accountability. Powell has been promoting the transparency and accountability of PoR (proof-of-reserve) to promote Kraken, ensuring complete transparency and reliability through semi-annual PoR audits.
The collapse of FTX has prompted people to self-custody their crypto. While wallet platforms are catching on with the "Not your keys, not your coins" strategy, large exchanges such as Coinbase and Binance have started promoting their own wallets, sensing the current situation. However, exchanges that do not have self-custody wallets, such as Kraken, are at risk of losing investors, and they cannot even stop withdrawals because it will declare them scams. So Kraken is trying to save its platform by other means.
Powell acknowledges self-custody as a better solution for non-traders in the Self-Custody Guidelines but also cites the limitations of self-custody, citing accountability. Powell has been promoting the transparency and accountability of PoR (proof-of-reserve) to promote Kraken, ensuring complete transparency and reliability through semi-annual PoR audits.
