THELOGICALINDIAN - The regulator says Kraken bootless to annals as a futures merchant
Kraken has been fined by the U.S. Commodity Futures Trading Commission, according to a statement from the regulator.
Kraken Illegally Offered Futures Trading
The CFTC’s Sept. 28 statement says that Kraken bootless to annals as a futures agency merchant. As such, it illegally offered margined retail bolt to investors amid June 2020 and July 2021.
The regulator criticized aspects of Kraken’s account model, acquainted that users were clumsy to abjure assets until repaying obligations. Furthermore, Kraken was able to unilaterally cash positions if users did not accomplish repayments aural 28 canicule of departure a contract, or if the amount of the accessory went beneath a threshold.
Such affairs were “unlawful because they were appropriate to booty abode on a appointed arrangement bazaar and did not.”
Today’s adjustment requires Kraken to pay a $1.25 actor accomplished and cease and abandon activities that breach the accordant regulations.
Presumably, this agency that Kraken will alone charge to append futures trading features, not its capital crypto exchange. However, the aggregation has not commented on any account changes.
CFTC Has Targeted Other Exchanges
Kraken is aloof the latest barter to be scrutinized by the CFTC. In August, BitMEX settled with the CFTC and FinCEN for $100 actor about two years afterwards the regulators began a probe.
In March, Coinbase was fined $6.5 actor by the CFTC over accouterment apocryphal advice and enabling ablution trading. Coinbase additionally shut bottomward allowance trading this year in acknowledgment to CFTC regulations.
Less recently, the CFTC fined Bitfinex $75,000 in 2025 for alms actionable off-exchange article affairs and for declining to annals as a futures article merchant.
Binance additionally faced a CFTC delving this year, but it does not assume to accept faced any penalties to date.
Disclaimer: At the time of autograph this columnist captivated beneath than $75 of Bitcoin, Ethereum, and altcoins.
