Buying and trading Alt coin for Washington State residents...

I am a resident of Washington State. In Washington we have regulations that make it hard for crypto exchanges to offer their services. For that reason, Coinbase (GDAX) and Gemini are the only exchanges that are licensed to serve Washington residents. The bummer is that both of these exchanges only support trading of BTC, LTC, and ETH. I want to invest in a few Altcoins. Does anyone know if it is lawful to start an account on Kraken (for example) and transfer BTC (or LTC, ETH) to the Kraken account so I can purchase Alt coins? Basically I'd fund my Kraken account with crypto from Coinbase instead of my bank account and then make withdraws by converting to a Coinbase supported crypto currency then send it back to my Coinbase account so that I can potentially cash it out for USD? (assuming gains)