Kraken is asking for your reason for withdrawing XMR

[RGBTC]

Not my personal experience, but this is quite an amusing request.


https://x.com/i/status/2113574565414605273

Kraken now has an additional task: interrogating users about their reasons for withdrawing XMR. I wonder, is this approach actually effective for monitoring privacy coins like XMR? And furthermore, how do they ensure that users are being truthful about their stated reasons?

Does anyone know when this additional withdrawal "challenge" was first implemented, and whether it also applies to other privacy coins?

[Murat]

None of their business, tell them to S**U!

[RGBTC]

^^
Well, this could be the last message to say "goodbye my XMR!". hahaa

[FinneysTrueVision]

They have already come out to do some backpedaling. Kraken might have been testing how invasive they could make their requirements without losing a significant amount of business. Their XMR trading volume was around half of what it was the day before, but it’s hard to say if that was normal market behavior or if people really did boycott them.

[joniboini]

If they're really testing user limit, I fail to see how they see asking for withdrawal purpose of privacy coins is a good idea. Why not do a survey beforehand, or anything that doesn't affect users funds directly? Maybe they did and I haven't seen them yet. Still a weird request though.

Then again, exchanges have become so intrusive lately. My local exchanges ask me withdrawal purpose and the identity of recipients whenever I made transfers directly from them. Sooner or later they'll probably ask me the same thing for each fiat withdrawal too.

[RGBTC]

Their XMR trading volume was around half of what it was the day before, but it’s hard to say if that was normal market behavior or if people really did boycott them.

I think that’s a natural market response following the recent commotion. And, quite crazily, they actually capped individual withdrawals at $1.5k per 30 days.
https://support.kraken.com/articles/deposit-and-withdrawal-limits

I read that their plans to go public have now been pushed back to at least the 2nd quarter of next year. This might be related to those new withdrawal requirements, even if they end up being rescinded. In other words, they’re trying to be more responsive to regulatory mandates for the sake of their IPO.
https://www.coindesk.com/business/2026/09/02/kraken-parent-payward-pushes-ipo-back-to-mid-2027-at-earliest