Cryptocurrency exchange, Kraken, is facing an investigation by the US Securities and Exchange Commission (SEC) over concerns about offering digital assets that could qualify as unregistered securities.
According to a Bloomberg report, the investigation is already in the advanced stages and could soon result in a settlement. However, neither the regulator nor the cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
Read this Term confirmed the probe.
The SEC is vigilant against the cryptocurrencies that could qualify as unregistered securities and the platforms offering them. It has busted several such small cryptocurrencies, mostly frauds, and is also in an ongoing legal fight with Ripple
Ripple
Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may
Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may
Read this Term over the status of XRP tokens as unregistered securities.
According to Kraken’s website, it offers more than 185 cryptocurrencies globally, many of which might not be for offering in the US. It needs to be clarified that the SEC is labeling which of these cryptocurrencies as unregistered securities and if it is also taking action against the cryptocurrency issuers.
A Major Cryptocurrency Exchange
Kraken is the third largest cryptocurrency, handling about $650 million worth of cryptocurrency trades daily, according to Coinmarketcap. Headquartered in San Fransico, it is also one of the oldest cryptocurrency exchanges, being established in 2011. Any action against such a company might have ramifications for the wider industry.
Last year, Kraken paid more than $360,000 in a monetary penalty to the US Treasury Department’s Office of Foreign Assets Control (OFAC) for a violation of sanctions on Iran, a separate case from the ongoing SEC probe. The exchange also agreed to invest another $100,000 to strengthen its sanctions compliance controls.
Kraken further changed leadership as Jesse Powell stepped down as the Chief Executive, handing over the charges to Dave Ripley. Meanwhile, the exchange is facing the pressure of the crypto market and recently slashed 30 percent of its workforce globally. It also shuttered operations in Japan, citing the market conditions.
Jesse Powell discussing crypto-first culture at Kraken.
Reports of similar SEC investigations on Coinbase over crypto listings also came last year, but that did not materialize into any enforcement action or settlement. However, the SEC sued a former Coinbase employee and two others for insider trading and identified several tokens listed on the exchange as securities in a lawsuit.
However, the US securities regulator is moving aggressively towards crypto lending products. The SEC and other US state regulators recently settled with crypto lending platform Nexo for $45 million for offering and selling unregistered securities. The federal watchdog even brought a lawsuit against Gemini and Genesis, labeling their crypto-lending products as unregistered securities.
Cryptocurrency exchange, Kraken, is facing an investigation by the US Securities and Exchange Commission (SEC) over concerns about offering digital assets that could qualify as unregistered securities.
According to a Bloomberg report, the investigation is already in the advanced stages and could soon result in a settlement. However, neither the regulator nor the cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
Read this Term confirmed the probe.
The SEC is vigilant against the cryptocurrencies that could qualify as unregistered securities and the platforms offering them. It has busted several such small cryptocurrencies, mostly frauds, and is also in an ongoing legal fight with Ripple
Ripple
Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may
Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may
Read this Term over the status of XRP tokens as unregistered securities.
According to Kraken’s website, it offers more than 185 cryptocurrencies globally, many of which might not be for offering in the US. It needs to be clarified that the SEC is labeling which of these cryptocurrencies as unregistered securities and if it is also taking action against the cryptocurrency issuers.
A Major Cryptocurrency Exchange
Kraken is the third largest cryptocurrency, handling about $650 million worth of cryptocurrency trades daily, according to Coinmarketcap. Headquartered in San Fransico, it is also one of the oldest cryptocurrency exchanges, being established in 2011. Any action against such a company might have ramifications for the wider industry.
Last year, Kraken paid more than $360,000 in a monetary penalty to the US Treasury Department’s Office of Foreign Assets Control (OFAC) for a violation of sanctions on Iran, a separate case from the ongoing SEC probe. The exchange also agreed to invest another $100,000 to strengthen its sanctions compliance controls.
Kraken further changed leadership as Jesse Powell stepped down as the Chief Executive, handing over the charges to Dave Ripley. Meanwhile, the exchange is facing the pressure of the crypto market and recently slashed 30 percent of its workforce globally. It also shuttered operations in Japan, citing the market conditions.
Jesse Powell discussing crypto-first culture at Kraken.
Reports of similar SEC investigations on Coinbase over crypto listings also came last year, but that did not materialize into any enforcement action or settlement. However, the SEC sued a former Coinbase employee and two others for insider trading and identified several tokens listed on the exchange as securities in a lawsuit.
However, the US securities regulator is moving aggressively towards crypto lending products. The SEC and other US state regulators recently settled with crypto lending platform Nexo for $45 million for offering and selling unregistered securities. The federal watchdog even brought a lawsuit against Gemini and Genesis, labeling their crypto-lending products as unregistered securities.
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