[2019-01-08] journalducoin.com - Kraken denounces US harassment with 315...

[reactorjuno]

Kraken denounces US harassment with 315 legal assignments.

Original article here > https://journalducoin.com/exchanges/kraken-denonce-un-harcelement-americain-avec-315-assignations-juridiques/

Translation in English:

Jesse Powell, co-founder and CEO of the Kraken Exchange, did not appreciate the inquisitorial questionnaire of the New York Attorney General. But given the number of sticks in the wheels that seem to put the US administrations to crypto-exchanges - and more particularly to Kraken - we understand better this enmity.

Kraken drowned under US assignments

In a very informative infographic (see below), carried out by them, Kraken denounces the tremendous increase in assignments and requests for compliance with laws. There were 475 requests in 2018, 3 times more than in 2017!

The top of the top is undeniably in the United States with 315 requests alone in 2018. The other countries that have issued more than 10 requests are:

the United Kingdom: 61
Germany: 34
France: 20

We can even see a clear increase during the year, with systematically more than 35 requests received per month since this summer.



The HSI - Homeland Security Investigations - and the FBI are the two most questioning US entities with 158 queries to their credit. The SEC and the CFTC, well known in the cryptoworld, have issued respectively 19 and 10 requests for investigation.

Kraken denounces an unjustified barrier to entry

According to Kraken, this increasing number of legal inquiries becomes a real barrier to entry for the operation of a crypto-exchange in the United States (Kraken is based in San Francisco), because of the huge legal costs to respond to it. . These summons require at least a production of documents, and sometimes a request to appear in court.

The cost of legal compliance is, according to the exchange, one of the main reasons why many companies choose to deny US users.

This new case tends to explain why Jesse Powell, CEO of Kraken, is so fiery about US regulators, he also refused to answer the questionnaire of the Attorney General of New York and said about BitLicense:

"[This is] a creature so fetid, so cruel that even Kraken has neither the courage nor the strength to cope with his sharp, big and nasty teeth".

 

[btyco]

Too many questions as these lawyers have no idea how the crypto world actually works. They think bitcoin is like digital money and they are right, but bring in altcoins into the discussion and they become completely lost. Lots of job opportunities for any blockchain + law experts

[posi]

Too many questions as these lawyers have no idea how the crypto world actually works. They think bitcoin is like digital money and they are right, but bring in altcoins into the discussion and they become completely lost. Lots of job opportunities for any blockchain + law experts

Never mind those lawyers because they usually see crypto currencies as taboo, because they have no power over and some it because of failure of egold and all other previous digital money. However, I am glad with Kraken standing up their right.

[figmentofmyass]

According to Kraken, this increasing number of legal inquiries becomes a real barrier to entry for the operation of a crypto-exchange in the United States (Kraken is based in San Francisco), because of the huge legal costs to respond to it. . These summons require at least a production of documents, and sometimes a request to appear in court.

The cost of legal compliance is, according to the exchange, one of the main reasons why many companies choose to deny US users.

it's an age old problem. the bigger an industry gets, the more bogged down it gets by regulations, licensing, and legal compliance. these are barriers to entry that screw over the little guys. that's why companies like coinbase rule the industry. they raised orders of magnitude more VC money than companies like kraken. so in spite of the compliance costs, they can continue pouring money into grabbing market share. meanwhile, kraken can barely keep its trading engine working. it's sad to watch.

[IconFirm]

meanwhile, kraken can barely keep its trading engine working. it's sad to watch.

Not sure where you got that info from. According to bitcoincharts.com they have the highest volume of trading in Euros:

https://bitcoincharts.com/markets/currency/EUR.html

...and the third highest volume of trading in USD:

https://bitcoincharts.com/markets/currency/USD.html

The US is drowning in laws & bureaucracy because they fear crypto & will do anything to kill it. By trying to build all these walls they're just cutting themselves off from the rest of the world. The 5 families & $ rule the roost there.....for now.

[figmentofmyass]

meanwhile, kraken can barely keep its trading engine working. it's sad to watch.

Not sure where you got that info from. According to bitcoincharts.com they have the highest volume of trading in Euros:
https://bitcoincharts.com/markets/currency/EUR.html
...and the third highest volume of trading in USD:
https://bitcoincharts.com/markets/currency/USD.html

that definitely doesn't look right. on coinmarketcap, their USD and EUR markets are ranked #66 and #69 respectively.

anyway, as a former customer, i just always thought their trading engine was unreliable and glitchy. i've had much better experiences elsewhere. maybe things have improved over the last year. i figured them dragging their feet on overhauling their trading back-end had to do with lack of free capital.