German Kraken Users Lose Access to Bitcoin Lightning Network

Top crypto exchange Kraken has removed the Lightning Network feature for customers in Germany, citing "technical changes."

Earlier on Friday, crypto news publication Protos reported that a support agent at Kraken had attributed the removal to "regulatory issues."

But a spokesperson for the San Francisco-based company told Decrypt that Kraken Support "incorrectly cited regulatory changes" for the suspension of the service.

“The change of service for German clients wanting to use Lightning is the result of technical changes,” Kraken said, without further explanation.

"While we always strive to provide the best and most innovative services to our clients, we unfortunately sometimes have to make tough decisions to ensure we can offer a reliable and secure platform for as many clients in Germany as possible," the company added.

The Lightning Network is one of several “second layer” applications for Bitcoin applications. It works to speed up transactions so the cryptocurrency can be used to make smaller purchases.

Transactions are routed through side channels so there is no need to use the main network, and are then settled in batches later. The idea is that people can use Bitcoin to make small payments for cheaper items at lower cost.

Other major crypto exchanges also have Lightning integration. Coinbase, America's biggest digital asset exchange, made the service available back in April. The idea is that customers can choose the alternative network for Bitcoin transactions and save significantly.

As Bitcoin transaction fees can rise when the network becomes busy, Lightning aims to solve that.