Kraken Refuses To Respond To Inquiries From New York Regulators

On Monday, New York Attorney General Eric Schneiderman announced a clarification mission on the rules and practices of cryptocurrency trading platforms and investment platforms in ICOs. In this perspective, the prosecutor sent a letter and a questionnaire to some cryptographic money sites. However, one of the targeted platforms, including Kraken, plans to dodge these demands and not cooperate with the regulators. Indeed, this firm has already fled New York in 2015 following the introduction of BitLicense. This gives him the opportunity to do without this request. Indeed, Kraken CEO Jesse Powell has made it clear that he has now realized that his company made the best decision when it left New York three years ago.

Questions that turn out to be difficult to answer

The questionnaires sent by New York were generally based on the lack of transparency on transactions in relation to cryptographic currency. Indeed, consumers in New York and across the country do not have the basic data needed to assess the fairness, security and integrity of these cryptocurrency sites. The Attorney General has asked all relevant platforms to disclose factual data. Among these data is for example the management and management method of the sites in question. In addition, he also sought exposure of more sensitive data such as the way in which clients' funds are held and the banks where they are stored. Apart from that, Eric Schneiderman also wants to know how to calculate fees, the currency transfer process and the external audit procedure.

Some platforms have agreed to cooperate

Contrary to Kraken, who categorically refused to respond to Eric Schneiderman's requests, some sites actually showed positive reactions. Indeed, most other platforms have indicated that they are on the same wavelength of the regulators. In the case of Bittrex for example, a representative of the company clearly stated that his team was eager to work with the New York Attorney General. The latter also added that improving transparency, security and accountability on cryptographic currency trading platforms is also one of their main objectives. In addition, the prosecutor's office admits to not understand Kraken's position. According to him, a legal entity has no reason to hide from its customers the details of their activity, especially at the security level.

Most users approve New York Attorney General's initiative

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According to some clients, the prosecutor's request would no doubt make it possible to increase users' confidence in cryptocurrency trading and investment in ICOs. Indeed, the answers proposed by the exchange platforms will be made public. A solution that is one of the best methods to bring more transparency and improve accountability in the cryptographic money sector. It also facilitates integration with this new technology.