Bank blocked my deposit of fiat to Kraken

Ive been reading similar stories from other people over the years, but never had an issue with this myself. Yesterday, I made a payment/transfer from my bank account to Kraken, as Ive done a dozen times in the past. This morning I got an email saying the payment has been blocked, as Kraken is not registered with the financial authorities in my country. I checked the register on their websites, and could only find a few domestic smaller (and unknown to me) crypto exchanges on the list.

I did notice on Kraken that it is possible to make the payment with a paypal account. Would this bypass the issue? I guess then the payment is strictly made to paypal, which in turns makes the payment to Kraken? The only alternative I can think of is signing up to one of the smaller unknown exchanges that is approved, and potentially just transfer crypto from there to Kraken.

As you may get from the post, Ive grown quite fond of Kraken over the years and would prefer to keep it as my main hub for the mainstream alts.