The San Francisco-based exchange previously swore off the U.S. market, having said that the country’s regulations were too nascent to know what they needed to comply with. Kraken instead focused its efforts on Europe and Japan, which it found to have simpler financial regulations.
“We are working toward being able to operate legally in the United States,” Kraken CEO and founder Jesse Powell told Bitcoin Magazine. “Unlike most other services, we’ve chosen to stay out of the U.S. until we have the necessary licenses, which has put us at a substantial competitive disadvantage. We’re looking forward to entering our home market.”
Bitcoin exchange Kraken has announced that financial compliance veteran Howard Bernstein has joined the company as chief compliance officer as the trading platform looks to expand to the United States.
“We plan to better localize our compliance efforts and adjust to a more customized risk-based model, as opposed to the generalized policy we have now, which might in some cases be too strict, and in other cases not strict enough,” Powell said.
According to a Kraken blog post, Bernstein will help manage the company’s day-to-day compliance program and begin to engage regulatory officials and lawmakers. But the new CCO also marks a change of heart for the exchange about the U.S. market, a country Kraken doesn’t operate in, but which contributes greatly to bitcoin’s trading volume.
Bernstein, who has more than 20 years of experience in American financial regulations, constructed the entire anti-money laundering program of the publicly traded investment bank Merriman Capital, Inc. He also helped Merriman comply with SEC and FINRA requirements. Much like the current state of Bitcoin regulations, the compliance requirements for the SEC and FINRA were new and very unclear at the time.
Bernstein will now led the exchange’s efforts to get a U.S. banking partner and necessary financial licenses so the trading platform can operate in the country.
Image via Kraken.
He added that the new CCO is also re-evaluating Kraken’s existing compliance programs in Japan and Europe.
Coinbase Adds First Ethereum Token to Professional Trading Platform
Crypto exchange startup Coinbase is adding the 0x protocol token to its professional trading platform, Coinbase Pro.
Announced Thursday, the exchange said in a blog post that it had begun accepting
SpankChain Says Hacker Returned Stolen Crypto Funds
A hacker who stole 165.38 ETH from the SpankChain platform has returned the funds.
The payment platform focused on the adult industry announced Thursday that the hacker, who stole the funds from th
Korea's Largest Bitcoin Exchange Sells Stake in $350 Million Deal
Bithumb, currently the largest cryptocurrency exchange in South Korea by trading volume, just confirmed it has sold more than 38 percent of its total ownership to a blockchain consortium based in Sing
Nevada's Utilities Agency Eyes Blockchain for Energy Credit System
The Public Utilities Commission of Nevada, a government agency charged with supervising and regulating power utility services in the state, is looking to implement blockchain for its energy credit tra
Fake News Site Used New Zealand Prime Minister to Pump Bitcoin Startup
A fake news site has used the likeness of New Zealand Prime Minister Jacinda Ardern to promote articles on Facebook aimed to pump a crypto startup.
Local media source Stuff reported Friday that sev
FinCEN Blasts Iran's 'Malign' Use of Crypto to Bypass Economic Sanctions
A U.S. regulator is urging domestic exchanges to help prevent the Iranian regime from using cryptocurrency to bypass economic sanctions.
The Financial Crimes Enforcement Network (FinCEN) published
3 Bitcoin Price Factors That Suggest Bears Are in Charge
The prospect of a deeper drop in bitcoin prices has increased, price-volume analysis indicates.
The world's most valuable cryptocurrency, which had been trading sideways since September 22, fell sh
Leading Auction House Christie's to Record Art Sales on a Blockchain
London-based Christie's, one of the oldest and most noted art auction houses in the world, is turning to blockchain tech to securely store sales and provenance data.
The firm, which has a history g