Kraken is charged by the CFTC due to disadvantaged crypto transactions, imposed a punishment of $ 1.25 million-regulation

The Commodity Futures Trading Commission (CFTC), Payward Ventures, the operator of the Kraken cryptocurrency exchange, has accused that "that he has offered illegal merchandise transactions with Margin in digital assets, including Bitcoin."

CFTC complains to Kraken and imposes punishment of $ 1.25 million

The Commodity Futures Trading Commission (CFTC) announced on Tuesday that it imposed a punishment of $ 1.25 million against the Kraken cryptocurrency exchange.

The regulatory authority for derivatives issued against Payward Ventures Inc., DBA Kraken, an arrangement for submitting and setting fees, "because it offers merchandise transactions with margin in digital assets, including Bitcoin, and has not registered as a futures commission merchant (FCM)". According to CFTC:

The order requires octopus to pay a civil law finance of $ 1.25 million and to refrain from further violations of the Commodity Exchange Act (CEA) as accused.

"From approximately June 2020 to July 2021, Kraken offered US customers who were not justified contract participants, margin goods transactions for digital assets," said the derivative wax dog.

The supervisory authority stated that "these transactions were illegal because they had to take place on a certain contract market and this was not the case", and emphasized that "Kraken was illegally active as a non -registered FCM".

The incumbent director for enforcement at the CFTC, Vincent McGonagle, commented:

This measure is part of the more comprehensive efforts of the CFTC to protect US customers. Margined, Leveraged or Financed Digital Asset Trading, which is offered private customers in the USA, must be carried out on properly registered and regulated stock exchanges in accordance with all applicable laws and regulations.

Kraken is not the first crypto exchange sanctioned by the CFTC. In August the Commission and the Financial Crimes Enforcement Network (fincen) charged bitmex Operation of a non -registered trading platform for derivatives. The stock exchange agreed to pay $ 100 million to solve the allegations.

CFTC Commissioner Dawn Stump made an explanation of the enforcement measures against octopuses on Tuesday. While she agreed to the results of her agency, she said:

The application of the Commission's FCM rules to a stock exchange in which retail stores are traded with goods is currently new territory.

"I believe that if the Commission is responsible for the fact that it is a non-registered FCM in relation to merchandise shops, the Commission is the relevant legal requirements for such an institution that tries to explain in a transparent way, register as a FCM and how the commission will apply it to enable the company to do business with US customers," concluded it.

What do you think of the measures of the CFTC against octopus? Let us know in the comment area below.

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