They are an exchange and just trying to make sure they got the money confirmed for real. After all the more confirmation the more secure it is.
That is not a good excuse.
The same way they are handling new L1 and L2 and even XMR with 720 confirmation is moderate requirement, some L1 out there requires thousands of confirmation.
But I bet this massive confirmation requirements only happen in kraken.
It is not a moderate requirement, don't speak nonsense. In one sentence you say that the requirement is moderate and in another that it is massive. Many L1s have 1-2 second block time, to require thousands of confirmations is very fast although I have not seen anywhere a requirement of thousands of confirmations.
Monero has a block time of 2 minutes. 720 confirmations is 1440 minutes or 24 hours. That is completely insane.