Kraken Under Investigation For Allegedly Breaking Sanctions
The US Dept. of Treasury investigation comes as Kraken allegedly allowed Iranian users onto the platform.
The U.S. Treasury Department is expected to impose a fine on crypto exchange Kraken for reportedly breaking U.S. sanctions with Iran, according to an initial report by The New York Times. This latest update by the Treasury Department comes as an update to a 2019 case alleging that the exchange allowed Iranian users to access its platform.
Kraken has yet to make a public statement on the matter and its Chief Legal Officer, Marco Santori is reported to have said that the exchange will not comment on specific discussions with regulators.
Santori added that “Kraken has robust compliance measures in place and continues to grow its compliance team to match its business growth. Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”
With various entities regulating cryptocurrency, this particular case has fallen under the jurisdiction of the Treasury Department’s Office of Foreign Assets Control because of its international nature.
Kraken is just one of the latest exchanges to fall under regulatory fire. Recently, both the SEC and DOJ brought separate charges against a former Coinbase executive for insider trading — now the exchange is also facing a potential investigation for the listing of unregistered securities.
With over four parties acting as regulatory forces for cryptocurrency, one is quickly becoming a bipartisan favorite — the Commodities and Futures Trading Commission (CFTC). In an effort to set itself up as the lead regulator for the industry, the CFTC has recently launched a dedicated digital asset regulation arm under the name of the “Office of Technology Innovation.” The new arm is set to replace the formerly established LabCFTC.
Elsewhere in crypto, Binance founder CZ is suing Bloomberg Hong Kong for defamation.