Kraken is leading the second wave of full-staked Ethereum (ETH) withdrawals, according to Nansen’s dashboard.

The bill's provisions share similarities with the proof-of-reserve reports that prominent exchanges like Coinbase, Binance, and Kraken already produce.

Kraken said the approval shows that it adheres to strict anti-money laundering and terrorism financing rules.

Payward Europe Solutions, an Irish subsidiary of Kraken registered in Dublin, was awarded virtual asset service provider (VASP) authorization from the Central Bank of Ireland on April 18.

Kraken has initiated the largest amount of Ether withdrawals since the Ethereum blockchain's Shanghai upgrade that allows such withdrawals. The exchange has registered to withdraw 556,272 Ether worth around $1.17 billion, accounting for 63.3% of all staked Ether in the withdrawal queue. Coinbase and Huobi have also initiated withdrawals, but other than centralized exchanges, there has not been a significant volume of withdrawals. As of 1:30 p.m. in Hong Kong, more than 1 million Ether are in the queue for withdrawal. Despite concerns of a rush to withdraw and cash in the token, CryptoQuant does not expect a flood of Ether sales, as the majority of staked Ether is still holding losses compared to Ether prices when it was staked.

U.S. crypto exchange Kraken has initiated withdrawal requests for their stakes following the Shapella upgrade that introduced ether (ETH) withdrawals.

Ethereum's Shanghai upgrade went live on Thursday, allowing those who have staked their ether to begin the unstaking process. Kraken leads the exit queue breakdown with 62%, according to on-chain data tracked by Rated network explorer. The number of validators in the exit queue has surpassed the 15,000 mark at press time, per Parsec Finance. Kraken's dominance in the unstaking queue is largely expected due to the legal issues it faced with the Securities and Exchange Commission, resulting in a $30 million settlement. The Shanghai upgrade appears to have had a marginal effect on the Ethereum protocol and its token, with only a -0.25% change in staked ether, according to Nansen.ai data. Nansen's data shows that 4.35 million ether, or about 24%, is staked at above $3,000.

The completion of the Shanghai upgrade on the Ethereum network may prompt some centralized entities to exit. Validators who secured the network with over 18 million ETH can now initiate withdrawals, with options for partial withdrawals to leave at least 32 ETH deposited or full withdrawals to pull everything off the network.

Crypto exchange Kraken has started the procedure for withdrawing all staked Ethereum associated with its users in the U.S. amid the Ethereum Shanghai upgrade scheduled today, April 12.

The Kraken logo displays the abstract and introduction, as well as sections on transactions and timestamp server from the Bitcoin white paper.