Digital asset exchange Kraken to pay $1.25 million penalty to settle U.S. CFTC charges

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WASHINGTON (Businesshala) – Kraken, one of the largest digital asset exchanges in the United States, will pay a $1.25 million civil fine to settle US charges that it offered certain transactions in digital assets, including bitcoin.

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From June 2020 to July 2021, Payward Ventures Inc., trading as Kraken, offers US clients margin retail commodity transactions in digital assets, the US Commodity Futures Trading Commission (CFTC) said in a statement. who were not eligible. The firm also acted as a futures commission merchant without registering with the agency.

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Kraken, which did not accept or deny the CFTC’s findings, cooperated with the investigation and was “proactive” in seeking compliance guidance, the CFTC said. The firm agreed to try and prevent further violations.

“We are committed to working with regulators to ensure that the rules governing digital assets create a level playing field globally,” a Kraken spokesperson said in a statement.

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In a consensus statement regarding the settlement, CFTC Commissioner Don Stump said that current agency guidance is not sufficient to establish clear rules for cryptocurrency firms that wish to offer retail commodity transactions involving certain digital assets.

Reporting by Chris Prentiss; Editing by Jonathan Otis and Dan Grebler

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