Crypto News – The SEC has targeted Kraken as part of a continuing regulatory sweep across the cryptocurrency sector.
SEC Targets Kraken: The Exchange Faces Lawsuit Over Registration Delays
In its action, the SEC filed on Monday, claiming that the San Francisco-based Kraken had blurred the distinctions between corporate and customer assets in addition to acting as an unlicensed broker, clearing agency, and dealer. Kraken allegedly mixed up to $33 billion in customer cryptocurrency assets with its own, which made the company’s operations extremely risky in the eyes of the regulator. In addition, there are major compliance problems because the exchange is allegedly diverting consumer cash payments for operating purposes.
Like other significant exchanges like Binance and Coinbase, Kraken is facing legal concerns from the SEC. A wider regulatory focus on compliance issues inside the cryptocurrency industry is highlighted by the similarities in the charges.
Kraken Strongly Denies SEC Allegations
Kraken’s continued operation as an unlicensed exchange is something the SEC is attempting to outlaw. The organization is also advocating for monetary fines and the reimbursement of any earnings made from these purported infractions. Still, Kraken rejects these charges with a hard hand. Asserting that it does not list securities and intends to vigorously oppose the lawsuit, the exchange disputes the SEC’s allegations in a public statement. In an effort to clarify the regulatory environment surrounding the cryptocurrency market in the United States, Kraken urges legislative action in opposition to the SEC’s regulatory strategy.