Is Kraken Shutting Down Services in New York?

Major cryptocurrency exchange Kraken is set to halt its trading services in New York starting from June 1, 2024. The decision, while unconfirmed with information so far only coming from a user post on X, comes amidst ongoing legal battles between Kraken and the US Securities and Exchange Commission (SEC).

According to the Michael Gogel on X, changes, effective June 1, will impact users who do not agree to the new terms of service. The move is attributed to Kraken’s transition from Payward Ventures Inc. to Payward Interactive, Inc.

Kraken’s issues with the SEC have been going on a while, and the company actually officially left New York state, as one commenter points out, way back in 2015 following the state’s adoption of the “BitLicense” regulatory framework.

In February last year, Kraken agreed to pay a $30 million and stop its crypto staking program to settle a case with the SEC. And then in May 2023, Kraken testified before Congress about the SEC’s overreach in the crypto industry, arguing that current laws are inadequate and that Congress should limit the SEC’s jurisdiction in favor of other agencies.

The SEC has since sued Kraken again, alleging that it operated as an unregistered securities business and mixed its own funds with customers’ assets. Kraken denies these claims and plans to “vigorously defend” its position.

The exchange maintains that it does not list securities and that the SEC has repeatedly challenged crypto exchanges to register without clear legal support or a defined path to registration. Kraken’s auditor had previously identified the commingling of funds as a significant risk to customers’ assets.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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