- Kraken has stopped offering Bitcoin Lightning Network withdrawals in Germany
- The company quietly removed support without a formal public statement, citing “regulatory issues” in response to a customer query
- Kraken has since clarified that technical, not regulatory, issues are behind the change, with hopes to reinstate the service in the future
Kraken has recently halted support for Lightning Network withdrawals in Germany, leaving customers unable to use the service. Without any public notification, the company removed the “lnbc” prefix for Bitcoin withdrawals from its list of supported address types for German users. While initial customer support responses pointed to regulatory hurdles, Kraken later clarified that technical reasons are behind the change.
Regulations or Technicalities?
The Lightning Network, a second-layer solution on Bitcoin’s blockchain, is known for facilitating faster and cheaper transactions by moving them off-chain. Many German users had relied on the network for these features, particularly its enhanced privacy protections. Kraken’s decision to discontinue the service, therefore, has caused inconvenience as well as confusion, with the change being made without an official announcement.
As Protos reported on Friday, the news only emerged when a customer enquired about the removal. A Kraken support agent initially attributed the change to regulatory issues but added that the company was working to bring the service back.
Later, Kraken issued a clarification, saying, “Kraken Support incorrectly cited regulatory changes as the reason. The change is due to technical adjustments, not regulatory concerns.” Kraken also emphasized its commitment to providing innovative services but noted that technical constraints sometimes force difficult decisions.
Kraken Still Bitcoin on Lightning
Despite the setback, Kraken expressed optimism about restoring Lightning Network withdrawals for its German customers, aiming to ensure both reliability and security on the platform.
In the meantime, the absence of this feature is a notable change for many users who depended on it for faster and more private Bitcoin transactions.
