[2018-04-20]Kraken Is Not Going To Provide Information About Exchange To Regulat

[Alex077]

Kraken Is Not Going To Provide Information About Exchange To Regulators In New York

CEO of Kraken refused to send a respond to the request to the New York regulators to disclose information about the company's activities.

In response to request from the New York Attorney General Eric T. Schneiderman entitled "The Virtual Markets Integrity Initiative", Jesse Powell said that Kraken will not disclose information regarding the activities of the exchange.
According to the request created for "consumer protection", cryptocurrency companies should disclose information about their activities, use of bots, conflicts of interest and other key problems. The deadline for responding to a request is two weeks.
As stated in the request, before May 1, exchanges must answer questions concerning:
property and management;
basic operations and commissions;
rules and procedures of trade;
disruptions in the operation of sites and suspension of trade;
internal control systems;
anti-money laundering, etc...https://en.bit.news/kraken-not-going-provide-information-exchange-regulators-new-york/

[darkangel11]

Great news. They are showing the government the finger and I like it.
The best thing about it is that they actually can. They are no longer located in NY, so they don't have to obey their local laws. I only wish that more exchanges will find a way to elude and defy the government. Unfortunately, worst case scenario we can expect more bitlicenses to pop up in other states or other parts of the world.

[buwaytress]

Great news. They are showing the government the finger and I like it.
The best thing about it is that they actually can. They are no longer located in NY, so they don't have to obey their local laws. I only wish that more exchanges will find a way to elude and defy the government. Unfortunately, worst case scenario we can expect more bitlicenses to pop up in other states or other parts of the world.

Not sure what to make of this. The last time Coinbase claimed a "partial victory" when fighting the IRS in court, they still ended up having to give in their customer details anyway. We also saw how exchanges in Japan post Mt Gox decide to fall in line, while in India and Chile they are coming up against the government in court too. All it takes is for one of them to win and set legal precedent, otherwise I don't see if anything can be achieved should they stand on their own - would take some corporate might to win one for the exchanges. Kraken's not the only one moving bases to escape a showdown. We've seen Binance move to Malta, we're also seeing plenty of blockchain firms move from Europe to Asia.

How about we all just go to DEXs and then all these centralised exchanges have nothing to attract the govt's attention, eh?

[aso118]

Kraken seems to be doing this, just to prove a point. It is interesting to note that there are no concerns about confidentiality of customer information or any such issues. This will end up in court as usual and Kraken might end up spending up more money and time defending their case, than they would have in providing the information.

[aoluain]

They may be just making a point but i like it all the same.
The majority of us are here for what bitcoin stands for, an alternative to the
controlled centralised fiat banking system. This also means we dont like our
crypto movements to be scrutinized, so well done Kraken.

I wonder though how long they will hokd out?

[krixi]

Great news. They are showing the government the finger and I like it.
The best thing about it is that they actually can. They are no longer located in NY, so they don't have to obey their local laws. I only wish that more exchanges will find a way to elude and defy the government. Unfortunately, worst case scenario we can expect more bitlicenses to pop up in other states or other parts of the world.

[richardsNY]

How about we all just go to DEXs and then all these centralised exchanges have nothing to attract the govt's attention, eh?

That would be a great way of moving forward, but not very realistic currently. Crypto versus crypto trades are completely decentralized, but something needs to be done to decentralize the process involving fiat trades. Tether is a great initiative, but again, isn't decentralized since a central party is in place issuing Tethers and maintaining the fiat reserve. Once the day is there that people in a decentralized manner can exchange fiat to crypto and vice versa, centralized exchanges will eventually dry out. I seriously can't wait for it to happen, especially so when we also think about how regulations will further limit people's freedom. Positive development however is that decentralized exchanges are gaining popularity. More usage means a quicker development and improvement of these platforms.

[Alex077]

Great news. They are showing the government the finger and I like it.
The best thing about it is that they actually can. They are no longer located in NY, so they don't have to obey their local laws. I only wish that more exchanges will find a way to elude and defy the government. Unfortunately, worst case scenario we can expect more bitlicenses to pop up in other states or other parts of the world.

Yes, this is really good news. That's an excellent example for other exchanges, because this obsession with total control destroys all innovations, blocks start-ups to develop and become big firms. I have told already that after the introduction of the Bit license, 80% of firms left the American jurisdiction. The same will be because of strict regulation ..

[bbc.reporter]

Kraken seems to be doing this, just to prove a point. It is interesting to note that there are no concerns about confidentiality of customer information or any such issues. This will end up in court as usual and Kraken might end up spending up more money and time defending their case, than they would have in providing the information.

In reality, that might happen. But idealistically Jesse Powell is doing us a favor by fighting for the users and the exchange's right to keep its users' information private.

But maybe he is also trying to hide a big money laudering whale hehehe.