Kraken Sets With SEC: Ends Staking Service, Pays $30 Million

Popular US cryptocurrency exchange Kraken has agreed to terminate its staking services and pay a $30 million penalty as a result of an agreement with the Securities and Exchange Commission (SEC).

The SEC announced on its official website on February 9 that Kraken provides its investors and to 21% He officially announced that he was accused of not recording the staking program, which he promised to return. The institution is the sum of the two institutions of the stock exchange. 30 million to pay the dollar fine and to provide staking services immediately. to stop announced his acceptance.

The announcement states that in addition to halting Kraken’s staking program, there is no objection to the SEC’s claims. without answering to make a final decision consented to specified. In addition to the information that the stock market violated the securities law numbered 1933, as of the decision directly or indirect offering any staking product as ban was also included in the information provided.

As the reason for the decision, staking services are based on the assets of the users. controls partially to lose and the stock market, despite this situation, is necessary security And to inform fulfill their qualifications not bring presented.

SEC Chairman Gary Gensler In his statement on the subject, he made the following statements:

Whether through staking, credit, or other means, institutions are responsible for meeting the disclosure and customer protection requirements required by our securities laws in the contracts they offer in exchange for users’ assets. The action has clarified the SEC’s position on this issue.

from SEC officials Gurbir Grewal on the subject:

Apart from the protections provided by the securities laws, we have seen before what happened in the work of crypto investments, investors often lack the explanations they deserve and leave the process harmful.

said.

Kraken announced on February 9 that its US customers Ethereum (ETH) assets outside staked all your assets And of your awards February 9 on spot to their wallets return and re-stake cannot be reported. If the stock market is Ethereum assets Until Shanghai update to be staked will continue and stated that users will receive staking rewards.

customers outside the USA to benefit from staking services “through another platform” can continue was also included in the stock market’s announcements.

CEO of Coinbase, the largest cryptocurrency exchange in the USA Brian Armstrong Recently, the SEC ban staking services He said he had heard rumors that he wanted to.

source site-9