# Kraken

By [bolor](https://paragraph.com/@bolor) · 2023-01-24

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In September 2020, the American cryptocurrency exchange Kraken also received a banking license. The federal government has stated that virtual currencies can be treated as an asset like stocks and bonds. That means those digital currencies can be traded, sold, borrowed, or inherited just like traditional stocks, bonds, or cash. According to the DoJ, Virtual Currencies fall into two categories, cryptocurrencies and tokens. A cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Tokens are a form of cryptocurrency. They are like stocks or securities in that they represent ownership of a certain business, real estate, or other asset. Some tokens may be legal and others may not be. Only ICOs that comply with the SEC regulations will be recognized as securities offerings. Cryptocurrencies are incredibly powerful tools when it comes to raising funding. But to raise funding in today’s market you need to find the right funding sources,

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*Originally published on [bolor](https://paragraph.com/@bolor/kraken)*