Kraken Suspends Lightning Services for German Users
Kraken has halted Lightning Network services for its German clients due to technical updates, while access remains unaffected in other countries.
Highlights:
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Lightning Network access restricted in Germany.
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Suspension attributed to technical updates, not regulations.
Kraken, a prominent cryptocurrency exchange, has suspended its Lightning Network services for users in Germany, citing technical updates as the reason for the change. This decision, effective September 10, 2024, has raised questions among customers, especially since earlier reports suggested that regulatory concerns might be the underlying issue.
The Lightning Network, a layer-2 solution for Bitcoin transactions, allows for faster and cheaper transfers by processing transactions off the main blockchain. Its removal affects users who relied on its privacy features and cost savings. Kraken has removed the 'lnbc' prefix from its list of supported withdrawal address types for German customers, confirming the discontinuation of Lightning withdrawals.
While Kraken maintains that the halt is due to technical changes, some reports indicate that regulatory issues may also play a role. The German banking authority, BaFin, has stated it is unaware of any new regulations that would necessitate such a suspension, leading to confusion among users about the actual reasons behind the decision.
Kraken has not provided a timeline for when or if the Lightning Network services will be reinstated, leaving many users uncertain about the future of their transactions on the platform.
Meanwhile, Kraken continues to operate normally in other countries, with no restrictions on Lightning Network access reported outside Germany.
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