Kraken has suspended support for the Lightning Network for its customers in Germany, citing technical changes as the reason. This decision was initially perceived as regulatory, but Kraken has since clarified the situation.
Lightning Network Suspension in Germany
Crypto news outlet Protos reported that Kraken's Lightning Network support in Germany was halted due to regulatory issues. However, a Kraken spokesperson refuted this, stating that the reason was technical changes without further detail.
Key Features of Lightning Network
The Lightning Network is an off-chain scaling solution for Bitcoin, enabling faster and cheaper transactions. It employs side channels to perform transactions, allowing users to make smaller payments without engaging the main blockchain network, which eventually settles transactions in bulk.
Kraken's Legal Issues
Kraken stated that while they aim to provide state-of-the-art services, tough decisions are sometimes necessary to maintain a reliable and secure platform for clients in Germany. Besides the suspension of Lightning Network in Germany, Kraken is also dealing with a lawsuit from the SEC in the U.S. over alleged operation of an unregistered securities exchange.
Despite facing temporary challenges and the need for changes, Kraken continues to strive to provide modern and reliable services to its users.
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