Kraken Ceo Will Not Comply with 'Insulting' New York Crypto Probe

The CEO of San Francisco-based cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Kraken refuses to hand over business operation details to New York’s Attorney General’s office after receiving a recent order.

Last Tuesday, New York’s Attorney General Eric Schneiderman send out regulatory questionnaires to 13 cryptocurrency exchanges operating in the United States. Though most of the exchanges welcomed the move, a few operating outside the state of New York did not like the interference of a state authority outside its jurisdiction.

New York AG’s office explains that the order was “requesting disclosures on their operations, use of bots, conflicts of interest, outages, and other key issues”. It further mentioned that the order was released with an aim of “protecting consumers”.

Responding to the order, Kraken’s CEO Jesse Powell clearly refused to respond to Schneiderman’s request, stressing that the exchange will not provide any information about its business.

He noted: ”When I saw this 34-point demand, with a deadline 2 weeks out, I immediately thought ‘The audacity of these guys — the entitlement, the disrespect for our business, our time!'”

Somebody has to say what everybody's actually thinking about the NYAG's inquiry. The placative kowtowing toward this kind of abuse sends the message that it's ok. It's not ok. It's insulting. https://t.co/sta9VuXPK1 pic.twitter.com/4Jg66bia1I

— Jesse Powell (@jespow) April 18, 2018

BitLicense's regime

Since 2015, multiple crypto businesses, including Kraken, moved their bases away from New York after facing the state’s harsh cryptocurrency framework - BitLicense. Kraken, at that time, called it “a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth”.

Powell, in his statement, is now praising the firm's wise decision to move out of New York.

"Kraken left New York because New York is hostile to crypto, and this ‘questionnaire’ we received today proves that New York is not only hostile to crypto, it is hostile to business," he added.

Community support

Moreover, for refusing New York AG’s recent order, Jesse Powell has received support from many figures of the nascent industry, including the CEO of ShapeShift, Erik Voorhees.

Jesse - thank you for taking the ethical stance and speaking up for what's right. Crypto has brought more transparency to finance and protection to consumers than the last 100 years of bureaucratic nonsense that has spilled from the sewers of New York. https://t.co/CsGaEO8R4F

— Erik Voorhees (@ErikVoorhees) April 19, 2018

AG's response

Responding to Kraken’s refusal, a spokesperson for the Attorney General's office told CoinDesk: “Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on hand.”