qwizzie
Well-known member
Kraken Accused by SEC of Operating Unregistered Platform, Improperly Mixing Customer Funds.
The U.S. crypto exchange is the latest targeted by the Securities and Exchange Commission in a series of similar actions being fought in court by other companies.
Source : https://www.coindesk.com/policy/202...ed-platform-improperly-mixing-customer-funds/
SEC complaint referred in that article (article contains a link to a 90 pages pdf file) mentions the following :
In fact, Kraken currently makes available for trading crypto assets that have been the subject of prior SEC
enforcement actions based upon their status as crypto asset securities, including crypto assets trading under the symbols
ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL, which were alleged
in one or more of the following actions against other unregistered intermediaries:
SEC v. Bittrex, No. 2:23-cv-580 (W.D. Wash. filed April 17, 2023);
SEC v. Binance Holdings Ltd., Civ. No. 23-1599 (D.D.C. filed June 5, 2023);
SEC v. Coinbase, Inc., No. 23-cv-4738 (S.D.N.Y. filed June 6, 2023).
Nevertheless, set forth herein are details regarding a non-exhaustive list of 11 crypto asset securities available on the Kraken Trading Platform and through the Kraken Services under the following trading symbols: ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL (the “Kraken-Traded Securities”).
So Dash is still viewed by the SEC as a security, but it is not part of the lawsuit against Kraken. I guess proving Dash is a security under the Howey test, is just a bit too difficult for the SEC, so the SEC is going after easier cryptocoin / crypto token targets.
Ironically Kraken recentely already achieved EU regulation compliance. Kraken achieved compliance by registering in Ireland as a Virtual Asset Service Provider (VASP) & Electronic Money Institution (EMI) licence under MiCa regulation (to be in effect somewhere in 2024), which will give Kraken unlimited access to the whole of the European Union.
See :
https://blog.kraken.com/news/kraken...service-provider-vasp-registration-in-ireland
https://blog.kraken.com/news/kraken...-secures-eu-e-money-license-and-vasp-in-spain
So Kraken got the heat of the US regulators on them, while also about to gain access to the whole EU when MiCa regulation comes into effect. This just shows how unbalanced the crypto regulation approach is, between the US and the EU. One is a crypto hostile approach, the other a far more crypto friendly approach.
Strange that the SEC is still engaging in this hostile regulation policy, after Ripple recentely won a large portion of its case against the SEC.
Are ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL that different from XRP ?
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