In yet another anti-crypto enforcement action, the US Securities and Exchange Commission (SEC) charged Kraken with operating its crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. In response, the crypto exchange disagreed with the complaint, stating plans to \u2018vigorously defend\u2019 its position in court.<\/p>\n
Also Read: Canada Wants Public Feedback to Enshrine Crypto Disclosures<\/strong><\/a><\/p>\n <\/p>\n The US agency complained that over the last five years and possibly prior to that, Kraken unlawfully made hundreds of millions of dollars in its crypto trading business. While the agency\u2019s view of crypto buying and selling as an act of crypto asset \u2018securities\u2019 has long been contested, the SEC continues to enforce law based on the same ambiguity. In its complaint dated November 20, 2023, the Commission said<\/a>,<\/p>\n \u201cThe SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law.\u201d<\/p>\n<\/blockquote>\n <\/p>\n By operating as an unregistered entity, Kraken had allegedly deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, the SEC said in its complaint.<\/p>\n <\/p>\n Also Read: AI Giant NVIDIA Openly Woos OpenAI Staff as Leadership Saga Rages On<\/strong><\/a><\/p>\nOperating As \u2018Unregistered\u2019 Securities Exchange<\/h2>\n
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