Kraken Tightens Verification Rules for US Customers

Briefly –

– Kraken to suspend margin trading for United States clients with primary identity verification.
– The move comes as North American regulators clamp down on crypto exchanges for failing to adhere to compliance regulations.
– At the moment, the US is active as far as crypto regulation is concerned.

Kraken crypto exchange plans to suspend margin trading for United States investors who fail to comply with the identity verification protocols. Through their blog post, the platform stated that US users who verified up to the starter tier would no longer access margin trading as of June 23. International customers and those above the intermediate level can still access the margin trading services.

Kraken with Stiffer Margin Trading Regulations

The Kraken move comes as North American regulators, including Canada crackdown on crypto exchanges that fail to adhere to compliance regulations. BitMEX is among the prolific cases, facing a lawsuit from DOJ and CFTC for different allegations.

Other crypto platforms noted the steps against BitMEX and the stiffer KYC requirements. However, regulators stated that the exchanges would be liable to unlawful activities without AML and KYC protocols. That might affect investment safety.

By 23 June platforms that will not meet the new regulations will have to reduce their margin exposure. Those who will not comply by the deadline will have 28 more days to expire.

Governments Increased Regulation Efforts

For now, the United States is active in implementing crypto regulations. Top rank government regulators seem more interested in approaching the crypto regulation subject. While others have awful statements, others propose rules that will bring innovation in the financial space.

Canada is another nation that stepped its crypto regulation game as OSC (Ontario Securities Commission) targets KuCoin and Polonex in recent past weeks. The authorities notified the exchanges to reach out to them in April. OSC stressed that any crypto exchange ignoring the rule would face unembellished consequences.

Keep in mind that different countries are overlooking crypto regulations with the increased adoption of digital assets. Some platforms have protested that the increased rules will impact revenue. However, with no choice, they have to comply.

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