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CFTC slaps crypto exchange Kraken with a $1.25 million fine

Updated: Aug 31, 2024
Published: Sep 29, 2021
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A federal regulator in the United States has fined Kraken $1.25 million for violating certain regulations

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Kraken receives a $1.25 million fine

Kraken, one of the leading crypto exchanges in the world, has received a fine of $1.25 million from the Commodities Futures Trading Commission (CFTC). The regulatory agency filed charges against Kraken for violating certain regulations.

According to the CFTC, Kraken failed to register as a futures commission merchant and also offered margin transactions in crypto. The CFTC said,

The Commodity Futures Trading Commission today issued an order filing and settling charges against respondent Payward Ventures, Inc. d/b/a Kraken (Kraken) for illegally offering margined retail commodity transactions in digital assets, including Bitcoin, and failing to register as a futures commission merchant (FCM). Kraken, founded in 2011, is one of the largest digital asset exchanges in the U.S.
The regulatory agency said the action is part of its broader effort to protect U.S. customers. Acting Director of Enforcement Vincent McGonagle added that margined, leveraged and financed digital asset trading offered to retail United States customers must occur on properly registered and regulated exchanges per the applicable laws and regulations.

Kraken wants to go public, but not sure it would be in the U.S.

The CEO of the cryptocurrency exchange Jesse Powell announced earlier this year that Kraken wants to become a publicly-listed company. However, he complained of the lack of clear regulations in the United States, adding that he is not sure if Kraken will be listed on a U.S. stock exchange.

The CEO said Kraken is already looking at other destinations, including the United Kingdom, Canada and the United Arabs Emirate.

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