After Coinbase, Kraken Exchange Is Now Under The Radar Of The SEC!
aAnother exchange followed suit when Binance defied US sanctions on Iran, which has now caught the attention of the US Treasury.
The US Treasury Department’s Office of Foreign Control investigates Kraken Kraken One****[email protected] centralized exchange Follower: 0 view Profile , a cryptocurrency exchange. According to a New York Times report, the exchange is reportedly involved in violating regulations and sanctions against Iran.
Kraken suspected of breaching the ban
According to a New York Times report, Kraken is under investigation for allowing users to buy and sell digital assets in Iran.
This case is from many years ago. In 1979, the US imposed sanctions on Iran, which prohibited the export of goods and services within the country.
Marco Santori Marco Santori President and Chief Legal Officer on Blockchain.com Marco Santori is a lawyer who has previously worked as a partner in Cooley LLP. Santori left Cooley LLP in February 2018 to become the chairman and chief legal officer of Blockchain.com, a longtime client and well-known cryptocurrency wallet firm. Santori is known in the legal community as the creator of the simple protocol for the Future Token, a legal structure that allows initial coin offerings to comply with regulations without the need for costly legal filings. He became chairman of the Bitcoin Foundation’s regulatory relations committee in 2013, after previously representing the trade group during the New York State Department of Financial Services’ BitLicense hearings. Santori was also instrumental in the development of Delaware’s blockchain strategy. Santori has been vocal about the changing regulatory landscape of blockchain and cryptocurrency enterprises during 2019. In March, Santori addressed a statement made by William Hinman, the head of the Securities and Exchange Commission’s corporate finance division, which indicated that Ethereum is in its current state. would not qualify as a security under the existing regulatory framework. According to Santori, an essential factor to consider when evaluating the weight of Hinman’s statement is the difference between today’s Ethereum and the network’s initial launch. Santori took to Twitter to analyze the proposals, claiming that these changes in one of the toughest regulatory domains indicate a step in the right direction for crypto-asset trading regulation. The New York State Department of Financial Services announced new proposals to revisit BitLicense within existing money transmission laws to make it more adaptable to additional crypto assets. entrepreneurinvestorCrypto and Blockchain Expert Follower: 0 view Profile Kraken’s chief legal officer addressed the issue via email, saying,
,Kraken does not comment on specific discussions with regulators. and added that “Kraken closely monitors compliance with sanctions laws and, as a general matter, also reports potential issues to regulators.”
The current issue surfaced in late November 2019 when a former employee, Nathan Peter Runyon Nathan Peter Runyon Nathan Peter Runyon other Follower: 0 view Profile Alleged illegal trade exchanges, despite sanctions. The authorities took up the issue and began an investigation into the transactions in Iran. The exchange is believed to have effectively defied regulations in other sanctioned countries such as Syria and Cuba as well.
Last year, Kraken offered illegal off-exchange digital asset trading and failed to register with the agency. The Commodity Futures Trading Commission imposed a fine of US$1.25 million on it.
Crypto Sanctions Against Russia
Crypto sanctions against Russia also include checks on digital currencies like the US. The Treasury Department leveled jurisdiction. The agency warned crypto companies dealing with sanctioned entities by saying,
,Action will be taken against anyone who circumvents sanctions against Russia, including the use of digital currencies.,
Traditional methods are no longer followed. Since cryptocurrency operates through the decentralized mechanism of the blockchain, it is challenging to have centralized control.