{"id":253197,"date":"2020-03-05T06:45:29","date_gmt":"2020-03-05T11:45:29","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=253197"},"modified":"2020-06-17T10:54:26","modified_gmt":"2020-06-17T14:54:26","slug":"fca-hits-kraken-with-illegal-service-provision-allegations","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/fca-hits-kraken-with-illegal-service-provision-allegations","title":{"rendered":"FCA Hits Kraken With Illegal Service Provision Allegations"},"content":{"rendered":"
The UK\u2019s financial regulator, the Financial Conduct Authority, or FCA, has recently accused one of the oldest cryptocurrency exchanges<\/a> in the world, the Kraken Exchange, with illegally providing its service within the UK.<\/p>\n According to the FCA\u2019s statement, Kraken<\/a>, and by extent the Kraken.com domain it uses, is illegally offering products and investment opportunities to residents within the UK.<\/p>\n The FCA\u2019s statement explained that the firm was providing financial services and products within the UK without the regulator\u2019s approval. Thus, the FCA must first authorize Kraken, like it authorizes all individuals and firms that offer, sell, or promote financial services within the UK. As one would imagine, Kraken doesn\u2019t hold the proper authorization to do these services within the country.<\/p>\n The FCA noted that the number of cases where a company is offering a financial service, one that it doesn\u2019t have the proper authorizations and approval for, is becoming more and more frequent within the UK. Thus, the department\u2019s employees are asking its resident users to be attentive to the issues at hand, and not trust companies that haven\u2019t received the proper licensing from the UK.<\/p>\n In an amusing twist of fate, Kraken has doubled down on the allegations thrown at it. The exchange had sent representatives that summarily deny all accusations. According to the employees of Kraken itself, they do not utilize mail with the Gmail.com address the FCA had listed in their statement, but do concede that they use the domain.<\/p>\n To back their argument, they cite the futures platform CryptoFacilities. CryptoFacilities belongs to Kraken and is itself registered to the FCA. Thus Kraken claims approval by extension. Not to be outdone, Kraken has sent counter-accusations against the FCA, demanding answers as to why the regulator is spreading information regarding Kraken that isn\u2019t the full truth.<\/p>\n This isn\u2019t the first time the wheels of progress had caught one of the world\u2019s oldest crypto exchanges by surprise. Back in 2015, the exchange was forced to back out<\/a> of providing services to New York citizens, due to the state mandating a BitLicense to do crypto activities within its borders. Kraken, alongside 21 other crypto companies, was forced to back out of the state.<\/p>\n There are the usual problems when it comes to licensing, with difficulty in obtaining the New York crypto license being especially infamous. It\u2019s gotten to the point where many crypto companies outright gave up on the prospect, seeing it easier to move outside of the state, rather than try to apply just to be denied.<\/p>\n","protected":false},"excerpt":{"rendered":"Claims of Illegally Given Services To UK Citizens<\/h2>\n
<\/a><\/p>\n
Summary Denial<\/h2>\n
Crypto\u2019s Wild West Has Come To Pass<\/h2>\n