Kraken, a major cryptocurrency exchange, has discontinued access to the Bitcoin Lightning Network for its German customers. The company attributed the decision to “technical changes,” dismissing earlier claims that regulatory concerns were the cause.
Initially, a Kraken support agent reportedly told users that “regulatory issues” were the cause of the suspension. However, Kraken later clarified to *Decrypt* that this was incorrect, confirming the change was purely technical. The company did not provide further details on the nature of these technical changes but emphasized its commitment to offering reliable and secure services to its German clients.
The Bitcoin Lightning Network is a second-layer solution created to enable faster and more cost-effective Bitcoin transactions. It achieves this by routing payments through side channels rather than the primary blockchain, allowing for quicker processing of smaller, more frequent transactions at reduced fees.
Other major crypto exchanges, such as Coinbase, have integrated Lightning to help users save on transaction fees, especially when the main Bitcoin network becomes congested. Kraken’s decision to remove the feature for German users highlights the challenges of maintaining and supporting innovative technologies across different regions.
