SEC accuses Kraken of using unregistered platform and mixing customer funds

Nov 21, 2023
Kraken joined the exchanges Coinbase and Binance among those charged by the Securities and Exchange Commission. The essence of the charge is the trading of ALGO, MATIC and NEAR tokens, which according to the SEC are securities.
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One of the claims against Kraken is the creation of significant risk when mixing client assets in the equivalent of $33 billion with the crypto exchange’s own assets. SEC charge also points to a period in which $5 billion in customer funds could have been used to ensure the operational operation of Kraken.

By analogy with the accusations against the Coinbase and Binance exchanges, SEC draws attention to the fact that Kraken is simultaneously an unregistered broker, clearing house and crypto exchange.

Kraken representatives completely disagree with the regulator’s opinion.

Previously, SEC has repeatedly called for cryptocurrency exchanges to be registered in the United States, however according to local laws, digital assets and exchanges can often fall under a double interpretation of the law.

Experts believe that regulation through punishment and coercion harms the American digital asset market, as well as hinders innovation and reduces the competitiveness of the United States in the world.