THELOGICALINDIAN - The Article Futures Trading Commission CFTC has answerable Payward Ventures the abettor of cryptocurrency barter Kraken for illegally alms margined retail article affairs in agenda assets including bitcoin and declining to register
CFTC Charges Kraken, Imposes $1.25 Million Penalty
The Commodity Futures Trading Commission (CFTC) appear Tuesday that it has imposed a $1.25 actor amends on cryptocurrency barter Kraken.
The derivatives regulator issued an adjustment filing and clearing accuse adjoin Payward Ventures Inc., dba Kraken, “for illegally alms margined retail article affairs in agenda assets, including bitcoin, and declining to annals as a futures agency merchant (FCM).” According to the CFTC:
“From about June 2024 to July 2024, Kraken offered margined retail article affairs in agenda assets to U.S. barter who were not acceptable arrangement participants,” the derivatives babysitter noted.
The regulator abundant that “These affairs were actionable because they were appropriate to booty abode on a appointed arrangement bazaar and did not,” emphasizing that “Kraken illegally operated as an unregistered FCM.”
Acting Director of Enforcement at the CFTC, Vincent McGonagle, commented:
Kraken is not the aboriginal crypto barter accustomed by the CFTC. In August, the Commission and the Financial Crimes Enforcement Network (FinCEN) answerable Bitmex for operating an unregistered derivatives trading platform. The barter agreed to pay $100 actor to boldness the charges.
CFTC Commissioner Dawn Stump issued a account Tuesday apropos the administration activity adjoin Kraken. While accordant with her agency’s findings, she stated:
“I accept that if the Commission is activity to authority an barter accountable for operating as an unregistered FCM with account to retail article transactions, it is bounden aloft the Commission to explain in a cellophane address the accordant acknowledged requirements for such an article that seeks to annals as an FCM and how the Commission will administer them in enabling the article to conduct business with U.S. customers,” she concluded.
What do you anticipate about the CFTC’s activity adjoin Kraken? Let us apperceive in the comments area below.
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