CFTC fines $1.25M on Kraken for CEA violation
Kraken exchanges failed to follow the laws precisely and facilitated illegally offered margined retail commodity transactions in cryptocurrencies.
Kraken is a popular crypto exchange in the US and also has a decent volume of crypto users on its platform. Under the Investment of US regulators, Kraken was found to violate laws.
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The U.S. Commodity Futures Trading Commission (CFTC) found that Kraken Exchange is not registered as a futures commission merchant. But still this exchange facilitated illegally offered marginal retail commodity transactions in cryptocurrencies for IS customers.
So due to this violation of the Commodity Exchange Act (CEA), CFTC fined a total of $1.25 million on Kraken Exchange.
CFTC figured out that violations of CEA occur from June 2020 to JUly 2021, by Kraken end.
Regarding this, Kraken already updated their policy page of Exchange in June, but CFTC said that even after the update of the policy page, Kraken was operating their operations outside of the laws.
The acting director of enforcement, Vincent McGonagle, stated
“This action is part of the CFTC’s broader effort to protect U.S. customers…Margined, leveraged or financed digital asset trading offered to retail U.S. customers must occur on properly registered and regulated exchanges in accordance with all applicable laws and regulations.”
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