Kraken CEO give a heads up to carefully use CEX

[Fatunad]

Nothing news, we have many experiences like this. And thanks to Kraken CEO for telling the truth. If we don't like to freeze our assets then have to move into a non-custodial wallet or deal it p2p. But we are not hearing that and there is not much we can do as well. We are forced to use centralized exchange due to Liquidity and pair. But need to make sure the amount isn't big there and not hold for a long time. Otherwise, at any time fund would freeze.

We dont really have any option because there are no liquidity and volume if we do tend to look on the other side plus this is the only place where you could really make out exchanges in between fiat to crypto
or crypto to fiat which people could really be having no choice but to deal with the risk.Of course it was never been suggested to store up huge amounts yet these platforms could anytime
make out some sudden change of decision and terms which you wouldnt be having no choice whether to comply on whats been asked or would totally be losing those funds.

[AnonBitCoiner]

Much bad factor are circulating for crypto. Canadian government Seizing wallet of centralized exchanges and its very bad for crypto. The Ukraine and Russia war also big issue And SEC pressure in the US and European banks fighting to get rid of it. Lots and lots of fud.

[teosanru]

Isn't this obvious? Everyone knows that CEX is not safe for holding your assets as whenever the authorities would want they can screw up your holdings by freezing the assets. Even though it won't be for a very long term at least for major exchanges. But anyways it still is a great risk. Not your keys, not your cryptos is the saying that is used by a lot of people on forums these days and this is the reason behind that saying. If the CEO of such a major exchange is agreeing with this I don't know what else people want to listen before they stop using CEX for storing their currency for a longer term.

[Oilacris]

Isn't this obvious? Everyone knows that CEX is not safe for holding your assets as whenever the authorities would want they can screw up your holdings by freezing the assets. Even though it won't be for a very long term at least for major exchanges. But anyways it still is a great risk. Not your keys, not your cryptos is the saying that is used by a lot of people on forums these days and this is the reason behind that saying. If the CEO of such a major exchange is agreeing with this I don't know what else people want to listen before they stop using CEX for storing their currency for a longer term.

We've long time know about this very basic risks on dealing with centralized platforms and its not a new thing aside from those newbies or who doesnt mind about the risk then this advise does really

suit them.These platforms could anytime be following government rules and regulations which means that sudden changes could really be experienced. If your funds gets locked then
thats the time you do only mind off about this problem or trying to avoid it but it should really be done earlier then you might have able to avoid problems and hassle.

[AmoreJaz]

Isn't this obvious? Everyone knows that CEX is not safe for holding your assets as whenever the authorities would want they can screw up your holdings by freezing the assets. Even though it won't be for a very long term at least for major exchanges. But anyways it still is a great risk. Not your keys, not your cryptos is the saying that is used by a lot of people on forums these days and this is the reason behind that saying. If the CEO of such a major exchange is agreeing with this I don't know what else people want to listen before they stop using CEX for storing their currency for a longer term.

We've long time know about this very basic risks on dealing with centralized platforms and its not a new thing aside from those newbies or who doesnt mind about the risk then this advise does really suit them.These platforms could anytime be following government rules and regulations which means that sudden changes could really be experienced. If your funds gets locked then
thats the time you do only mind off about this problem or trying to avoid it but it should really be done earlier then you might have able to avoid problems and hassle.

some are still storing their coins in CEXs because of convenience reasons. however, if you will not trade for few days, better get your funds out and send it to secured wallet. even exchange officials are advising their clients not to store their coins in CEXs. and yet, some still failed to do so.
people need to learn their lesson in hard way before they totally get the scenario. governments can freeze anytime your account if you are in a centralised exchange. so before it happens, make sure you do your part.

[adaseb]

I think unless you donated funds or received funds for the truckers convoy then you shouldn’t worry. There was some Bitcoin addresses where they were accepting donations. I think one guy donated like 5BTC and the address was public and everything. They got tainted and now flagged.

So if it’s sent to an exchange like Kraken they can freeze the person who received it. In Canada they are not treating this as a protest but instead terrorism. It’s gotten pretty bad lately. Even news crews don’t feel safe.

[darewaller]

It must be related to Binance.US probe investigation of SEC with thier trading affiliates. The investigation could lead to accusing CZ of conspiring suspicious activity with partners inside the trading platform. Jesse Powell is just sending the possibility that SEC will also try to get him through such an investigation and warn everyone now to cautiously use the exchange and leave money inside that you can afford to lose.

Would this mean Jesse is hiding something? 

This isn't the first thing that come to my mind but maybe because I didn't know that issue about binance and sec but what comes to my mind after reading the post is the issue on Canada about the truck drivers because that also shows how centralized entity control their funds and they then switch to decentralize currencies, the same thing can be applied here in the op's post, CEX has the full control of your funds and they can do whatever want to but this things are actually not new and I think majority of us already know this but how can you say that the CEO of kraken hides something from their users? He only replies to the guy in the tweet. Do not give it a new meaning.

[teosanru]

Isn't this obvious? Everyone knows that CEX is not safe for holding your assets as whenever the authorities would want they can screw up your holdings by freezing the assets. Even though it won't be for a very long term at least for major exchanges. But anyways it still is a great risk. Not your keys, not your cryptos is the saying that is used by a lot of people on forums these days and this is the reason behind that saying. If the CEO of such a major exchange is agreeing with this I don't know what else people want to listen before they stop using CEX for storing their currency for a longer term.

We've long time know about this very basic risks on dealing with centralized platforms and its not a new thing aside from those newbies or who doesnt mind about the risk then this advise does really suit them.These platforms could anytime be following government rules and regulations which means that sudden changes could really be experienced. If your funds gets locked then
thats the time you do only mind off about this problem or trying to avoid it but it should really be done earlier then you might have able to avoid problems and hassle.

Yes agreed but if CEO of a centralized exchange is himself reiterating the statement in Public, it really is a big thing, so far it's just speculation but if he is saying governments might already be coming for your assets and I think exchanges where you haven't done your KYC are even more prone to such a thing as governments would want to catch the money that is anonymous.

I think unless you donated funds or received funds for the truckers convoy then you shouldn’t worry. There was some Bitcoin addresses where they were accepting donations. I think one guy donated like 5BTC and the address was public and everything. They got tainted and now flagged.

So if it’s sent to an exchange like Kraken they can freeze the person who received it. In Canada they are not treating this as a protest but instead terrorism. It’s gotten pretty bad lately. Even news crews don’t feel safe.

This isn't necessary. If you have not done KYC, the government can easily flag your account by saying you are a truckers convoy supporter, how will you be able to differentiate yourself without KYC, later even if you do this, how long the process would last moreover if you are in some other country and US/ Canada holds your money, process becomes even more lengthy.

[Emitdama]

I think unless you donated funds or received funds for the truckers convoy then you shouldn’t worry. There was some Bitcoin addresses where they were accepting donations. I think one guy donated like 5BTC and the address was public and everything. They got tainted and now flagged.

So if it’s sent to an exchange like Kraken they can freeze the person who received it. In Canada they are not treating this as a protest but instead terrorism. It’s gotten pretty bad lately. Even news crews don’t feel safe.

Yeah, you may be right, but I think mainly what the op is trying to point out here is the risk of making use of CEX. You know that CEX are controlled by the government. So in the future, if any such event should take place, which would require the government to seize crypto assets that belongs to citizens that are involved in such activity, then you know their target is definitely through CEX and not p2p exchanges as they wouldn’t be able to have access to seizing coins through p2p.

So, it’s best to make use of p2p than using CEX, if you want to make sure that you’re fully in control of your money and your address can’t be freezes in case of anything in the future.

[hyudien]

An account freeze was something I've experienced in 2021 on the Kraken exchange, maybe back then it wasn't as serious as it is now. So at that time, Kraken froze my account because the deposit and withdrawal processes had too different time intervals. Like on Binance, you may know the process can take 15 to 30 minutes to keep funds from freezing because the process is considered suspicious activity.

As for 2021, I don't use Kraken anymore until now. So I don't know much about the worries that followed.

[Findingnemo]

That's true and he got some balls to admit that even if being the CEO of an centralized exchange but he was talking about freezing particular account if regulatory body claims that the account involved some illegal activities so not everyone have to worry about freezing an account unless they aren't doing anything against the government and ToS of exchanges.

[stomachgrowls]

That's true and he got some balls to admit that even if being the CEO of an centralized exchange but he was talking about freezing particular account if regulatory body claims that the account involved some illegal activities so not everyone have to worry about freezing an account unless they aren't doing anything against the government and ToS of exchanges.

There would be some lock up of funds but it would be temporary and its true that as long the platform would really abide out the law or regulation then they would just simply make out some changes

and once they would integrate it then users do need to follow it which means that you wouldnt be having be no choice but to deal with it.Locked up funds would be temporary
unless if we do talk about hacking incident.We havent seen government intervention which do involves locked up funds without any recovery or having access into it.

[adzino]

It was something that everyone should have already known. Even if you have joined an exchange that doesn't require you to pass KYC to trade, they can freeze your assets if they are told to do so. They will have to comply no matter what. That's why it is better not to store your funds in an exchange. Done with your trading? Take them out and store them somewhere safe. Store them in wallets where only YOU have the control of the private keys. At least Kraken is being honest about it. No other CEX would like to admit about this issue.

[boyptc]

So I don't know much about the worries that followed.

It's for every exchange and every trader, it's a general talk that all of us should be careful with centralized exchanges. He's not just a CEO but he's also a user like us that knows the risk that it bears when letting our funds sleep into cexes.

Even if an exchange showed strong SAFU policy, don't rely on it most of the time as they all have limited funds. Once a big hack happens and they've got no enough fund to cover the loss, everyone's at loss.

[Obito]

That's pretty good of them to have that advisory because they know that if they don't do it, they're the ones that's going to get the flak when the freeze finally happens and I think that people should start doing so because it's only a matter of time before CEX are going to be under the thumb of the government to do their bidding.

[Findingnemo]

That's true and he got some balls to admit that even if being the CEO of an centralized exchange but he was talking about freezing particular account if regulatory body claims that the account involved some illegal activities so not everyone have to worry about freezing an account unless they aren't doing anything against the government and ToS of exchanges.

There would be some lock up of funds but it would be temporary and its true that as long the platform would really abide out the law or regulation then they would just simply make out some changes

and once they would integrate it then users do need to follow it which means that you wouldnt be having be no choice but to deal with it.Locked up funds would be temporary
unless if we do talk about hacking incident.We havent seen government intervention which do involves locked up funds without any recovery or having access into it.

Hacking incidents may dry up the hot wallets of exchanges completely but its completely different from the context of this tweet. This is all about freezing someone's account at any time if the government wants to is possible so whoever wants to hold their funds never choose any exchange for that purpose.

[redsun114]

Well, one reason to avoid custodialexchanges/wallet. I have already been avoiding them for a quite a long time now. I have usually had this feeling that if the government wants to take any action at all, it would be through these custodial wallets and exchanges, since they are being regulated by the government. So, anyone who doesn’t want to get into such troubles is best off avoiding them entirely.

For over a year now I have been making use of p2p, and I would also like to point out that p2p has benefited me more than making use of CEX, as I get to set my own terms and make good profit from selling my assets. Some people tend to avoid p2p because it’s usually difficult at first to understand, but when you try it out a few times, you will get to understand.

[Renampun]

Not your keys Not your coins.
I really think every APP and wallet should start with that. Let people know that yes you can keep your BTC anyplace they want. But, if it's not local to them then it's not theirs.
I just bought some BTC to trade, and I left it on the exchange. I know the risks. How many people do not?

-Dave

got "freeze" is quite a serious threat to those who store their crypto assets on CEX...

but I also can't deny, that I keep some of my assets for trading on CEX, I know the risks too but I still believe Binance and kucoin will be responsible for the assets which I put on their exchange.

[crwth]

I think if you are someone who is in it for the long run, then it’s better to hold on to your coins with your hardware wallet or something. Because you can never have control with your coins if it is in a centralized exchange, I think it’s not just CEX But also just centralized exchanges in general.

You wouldn’t have to worry too much if you are not doing anything wrong it’s just that it is a good practice to hold onto your coins for yourself.

[Quidat]

Not your keys Not your coins.
I really think every APP and wallet should start with that. Let people know that yes you can keep your BTC anyplace they want. But, if it's not local to them then it's not theirs.
I just bought some BTC to trade, and I left it on the exchange. I know the risks. How many people do not?

-Dave

got "freeze" is quite a serious threat to those who store their crypto assets on CEX...

but I also can't deny, that I keep some of my assets for trading on CEX, I know the risks too but I still believe Binance and kucoin will be responsible for the assets which I put on their exchange.

But dont expect that in times of possible hack then dont anticipate that you would be given out some refund or compensation of your funds at least.
The hassle thing about pulling in and putting in funds on CEX is understandable on which this isnt surprising on why people do really take the risk
on storing up their assets on a centralize platform despite of that common problem.Its up to save up some fees plus having the easy access whenever
you do make buying or selling decisions.