The US Commodity Futures Trading Commission (CFTC) fined Kraken $ 1.25 million for lack of registration and margin transactions with cryptocurrencies.
As noted in a statement by the CFTC, the exchange provided access to margin trading, while it was not registered with the regulator. Kraken was in breach of registration requirements from June 2020 to July 2021, according to the Commission. However, at the moment, the violation has already been eliminated.
CFTC Commissioner Down Stump stressed that Kraken’s violation of regulatory requirements indicates a lack of clarity in the rules regarding transactions related to certain digital assets. She noted:
“As the requirements become more urgent, the Commission needs to revise them to provide market participants with certainty and a common understanding of the rules.”
Kraken’s management highlighted its commitment to comply with US regulators and noted that in June 2021, the exchange began to restrict access to margin products for US users in order to fully meet regulatory requirements.
CFTC Commissioner Dan Berkovitz recently stated that the agency can regulate the trading of futures, swaps and options on cryptoassets, but it needs additional resources to work directly with the cryptocurrency market.