• Wed. Jun 22nd, 2022

Bitcoin Exchange Kraken To Pay $ 1.25 Million To Settle CFTC Fees

Cryptocurrency exchange Kraken has agreed to pay $ 1.25 million to settle CFTC fees that allow customers to illegally trade margin products related to bitcoin and other cryptocurrencies.

The Commodity Futures Trading Commission also accused the San Francisco-based company of not registering as a futures trader.

Kraken, founded in 2011, is one of the largest digital asset exchanges in the United States

“This action is part of the CFTC’s larger effort to protect US customers,” Acting Director of Law Enforcement Vincent McGonagle said in a statement.

The CFTC said that from June 2020 to July 2021, “Kraken offered retail commodity transactions with margin in digital assets to U.S. customers who were not eligible contract participants.”

And trading in margin, leveraged, and funded digital assets “offered to US retail clients must take place on properly registered and regulated exchanges in accordance with all applicable laws and regulations,” the agency said.

“We appreciate that today’s settlement recognizes our cooperation and commitment on the matter,” Kraken said in a statement.

“We are committed to working with regulators to try to ensure that the rules governing digital assets create a level playing field globally – which allows the crypto space in the United States to thrive, while protecting the interests of individuals and the integrity of the industry. “

Bitcoin has been on a roller coaster recently, continuing the volatility that has distinguished digital currency from its inception 13 years ago.

It recently traded at $ 42,244, up 2%. It is down 20% since September 5, but has jumped 44% since the start of the year.

Bitcoin bulls say the digital asset is a hedge against inflation and a store of value. The bears note that the only thing bitcoin has proven so far is a vehicle for speculation.

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